Austria’s FMA Revokes Crypto License of ATIRA, Flags StormGain

The Austrian financial supervisory authority, the Financial Market Authority (FMA), has become vigilant against crypto companies with the recent revocation of the registration of ATIRA GmbH as a virtual asset services provider.

The regulator finalized the decision on Wednesday, citing several lapses in anti-money laundering and tarot financing Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term on the part of the crypto company.

“The undertaking has failed to implement adequate and appropriate measures for observance of due diligence obligations for the prevention of money laundering and terrorist financing and has committed a large number of severe breaches or breaches of duty against the Financial Markets Anti-Money Laundering Act (FM-GwG; Finanzmarkt-Geldwäschegesetz). The undertaking is therefore prohibited from exchanging virtual currencies into fiat money and vice versa,” the FMA stated.

Flagged Another Unlicensed Crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term

However, the decision against ATIRA was not the not only regulatory action recently taken by the FMA against crypto companies. Additionally, the Austrian watchdog cautioned investors against StormGain LLC, a St. Vincent and the Grenadines crypto exchange.

“This provider is not authorized to carry out banking transactions in Austria that require a license,” the regulator added. “The provider is therefore neither permitted to trade on a commercial basis on its own account or on behalf of others.”

Last year, Austria mandated the requirement for an FMA license for crypto exchanges to operate in the country. This led to the submission of applications from 40 prospective digital assets providers by the beginning of 2021, but licenses were granted to only 18 firms, Finance Magnates then reported.

Meanwhile, the Austrian regulator is actively flagging unlicensed crypto entities that are taking Austrian clients without acquiring the mandatory local registration.