Austrian Financial Market Authority calls for tighter regulation of cryptocurrencies

Klaus Kumpfmuller and Helmut Ettl, board directors of FMA (Financial Market Authority) have offered proposals demanding for stricter regulations on digital currencies and ICOs (Initial Coin Offerings).

Reports suggest that Kumpfmuller has proposed a ‘threshold-dependent’ prospectus requirements for ICOs just like securities.

The FMA executive committee asserted  that two million euros would be a reasonable threshold limit.

He also demanded a concession obligation for distributors of digital currencies and treatment of these virtual currencies like securities in there.

Comparing the proposed regulations with the existing financial regulations, Ettl said, “For the purchase and sale of foreign currencies, you should have a mini-license.”

As of now, no such analogous regulation exist under the Australian law for trading the cryptocurrencies. ‘

Last year, the FMA submitted around 30 settlements about suspected legal violations in connection with the digital currencies and Initial Coin Offerings to the public prosecutor’s office.

Die Presse reported that the FMA board members have expressed their dissatisfaction with the finance Minister, Hartwig Loger stating that he wanted to strip the agency from its authority.

 

According to the FMA executive board, matters like money laundering have only been superficially regulated by the law.

 Ettl said that it was crucial that the Financial Market Authority retains “integrated and independent supervision.”

However, with regard to imposing stricter regulations on cryptocurrencies, the FMA and the Finance Minister are most likely on the same page.

When Löger called for stricter rules in the crypto sector in February, and for early regulation at the European level, both Ettl and Kumpfmüller have approved and offered their participation in a “FinTech Regulatory Council” proposed by Löger.

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