The Austrian Financial Market Authority, also known as FMA, through its board of directors, Klaus Kumpfmuller and Helmut Ettl, demands stricter ICO (Initial Coin Offering) and cryptocurrency regulation. The announcement was made public by the Austrian newspaper “Die Presse,” cited by “Cointelegraph auf Deutsch” yesterday, on June 29th.
Klaus Kumpfmuller asked for a “threshold-dependent” plan to regulate ICOs, very similar to what is already required for securities. The FMA assessed that a 2 million euros threshold would be reasonable. Also, Kumpfmuller said that cryptocurrency “will be treated like securities in the future.”
On the other hand, Helmut Ettl “for the purchase and sale of foreign currency you need a mini-bank license,” comparing the proposed cryptocurrency regulations with the current restrictions on financial institutions. All that because, to date, there are no cryptocurrency regulations in Austria, although FMA issued more than 30 statements related to crypto trading and ICOs issues that were suspected as illegal.
Austrian FMA demands stricter ICO and cryptocurrency regulations, but also stricter legislation against money laundering
As FMA reported in the press release, the regulations addressing matters such as money laundering are very shallow in Austria, so there is an urgent need for stricter legislation to deal such issues, but also ICOs and cryptocurrency.
Back in February this year, the Austrian Finance Minister Hartwig Loger asked for the implementation of stricter cryptocurrency regulation, a proposal that was quickly accepted by the Austrian Financial Market Authority’s board directors, Klaus Kumpfmuller and Helmut Ettl, both also offering themselves to be part of the proposed “FinTech Regulatory Council.”
On the other hand, the European Union has already implemented some ICO and cryptocurrency regulations, but now Austrian financial authorities want to come up with their own set of rules regarding digital assets, following the models already established by other countries around the world.