An increasing number of nations across the globe are starting to adopt a regulatory approach towards digital currencies. As lawmakers fear illegal uses and aspects of coins and tokens, governments are looking to be firm and introduce new laws to combat them. After countries like the U.K., South Korea, China, and many others, Austria is now the one making the headlines regarding regulating cryptocurrencies.
The EU member state has announced that it wishes to be tougher on cryptocurrencies, especially when it comes to fighting illegal activities such as money laundering and terrorism funding. Furthermore, the Austrian government said it wants to keep an eye on cryptocurrency exchanges and oversee the launch of new coins and ICOs. One of the new regulations that was discussed was the fact that exchanges are now required to disclose trades that are over €10,000, and to give details about all the trading parties to the government.
The Austrian Minister of Finance Hartwig Loeger stated “Cryptocurrencies are significantly gaining importance in the fight against money laundering and terrorism financing. That’s an important aspect for the changes we support. We need more trust and more security.”
The nation’s officers want to use the existing regulations for gold trading and existing financial products and apply them to cryptocurrencies. Lawmakers want to also avoid market manipulation such as pump-and-dump schemes, scams and pyramid schemes. Moreover, regarding ICOs, they want to ensure that no insider trading will take place and that companies won’t take advantage of their investors. These coin offerings will also have to be approved by the Financial Market Authority after the company provides a “digital prospectus”. The country wants to use its knowledge of financial markets and its existing laws to approach crypto markets efficiently. Austria is also waiting and hoping for EU regulations regarding digital currencies to come soon.
Who will be the next country to take a strong stance on virtual currency markets? And who will be the next one to be open about adopting and including digital currencies in their existing financial system?
TLDR: Austria is the latest country to announce that it will regulate cryptocurrencies. Government officials discussed potential new regulations, mostly based on existing laws for financial markets.