The lack of proper regulations is a serious challenge for crypto markets. Starting from 2020, crypto-related companies will have to comply with new rules as part of AMLD5. The purpose of the Fifth Anti-Money Laundering Directive (AMLD5) is to prevent activities connected with terrorism. Moreover, this directive will help to avoid hiding personal wealth.
This year crypto companies will have to r to register with the Financial Markets Authority (FMA) of Austria. There are certain requirements. For example, businesses must prove that they have enough liquidity as well as resources to operate in the country. Otherwise, they will face fines up to 200,000 EUR (more than $221,000) starting from January 10.
The new regulations will affect activities connected with issuing or selling cryptocurrencies as well as transferring them.
Furthermore, companies that operate trading and exchange platforms should also comply with new regulations.
Austrians have access to the most prominent European exchanges, such as Kraken and Bitstamp.
The exact number of crypto operations in Austria is unknown, as small brokerages existed in the country for many years.
Remarkably, international exchanges that are operating around the European Union are facing even more significant challenges. They may have to comply with both local regulations as well as the EU-wide rules.
Crypto regulations in Austria
Austria adopted strict regulations as part of the measures known as AMLD5. The regulations will have a huge impact on the crypto business as this directive will change the industry.
Crypto exchanges already implemented some of the requirements. For instance, exchanges are using KYC (Know Your Customer) when it comes to accepting new clients. A company should have transparent data on company ownership etc.
The new requirements were created as a response to the Financial Action Task Force (FATF) set of proposals.
It is worth mentioning that the crypto market is evolving, and authorities should work together with the crypto community to create optimal regulations.