State of crypto regulation in Austria

There is currently no specific crypto regulation in Austria. However, the FMA is considering crypto assets under its AML regulations.

Crypto compliance in Austria quick guide

This quick guide gives you quick insights into the regulation of crypto assets in Austria.

Crypto and AML regulation in Austria

Austria transposed the Fifth Anti-Money Laundering Directive (AMLD5) into national law. To this end, it has accordingly amended its Financial Markets Anti-Money Laundering Act (FM-GwG). The amended act gives the following definition of virtual assets:

• Virtual currencies: “a digital representation of value that is not issued or guaranteed by a central bank or a public authority, is not necessarily attached to a legally established currency and does not possess a legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and which can be transferred, stored and traded electronically.”

The amended act also includes VASPs as obliged entities under the requirements set forth in the AMLD5. The legislation defines VASPs as “providers in relation to virtual currencies offering one or more of the following services:

• services to safeguard private cryptographic keys, to hold, store and transfer virtual currencies on behalf of a customer (custodian wallet providers);
• exchanging of virtual currencies into fiat currencies and vice versa;
• exchanging or one or more virtual currencies between one another;
• transferring of virtual currencies;
• the provision of financial services for the issuance and selling of virtual currencies.”

Following the amendment, the Financial Markets Authority (FMA) became the competent authority to supervise crypto service providers. The main AML/CFT obligations crypto service providers have to follow include:

• Appropriate record-keeping;
• Reporting to the FMA;
• Customer due diligence (PEPs, high-risk countries, etc.);
• Transaction monitoring.

On top of that, crypto service providers must register with the FMA. Offering crypto services in Austria without proper registration is an administrative offense. It can result in fines of up to 200,000 EUR.

Crypto compliance in Austria and blockchain analytics

Today, crypto service providers can rely on many providers to help them in their compliance journey, saving them costs and time.

Scorechain’s blockchain analytics solution assists companies worldwide in their crypto transaction monitoring and risk assessment activities for efficient compliance with AML/CFT requirements.

Tax treatment of crypto assets

In Austria, crypto taxation concerns crypto assets defined by the Austrian Income Tax Act. But, it does not include nonfungible tokens (NFT) and tokens underpinned by real assets.

The Environmentally Responsible Tax Reform of crypto taxation was enforced this year in March. Since the reform, crypto-assets acquired after February 28, 2021, are under specific taxation rules. The new rules consider crypto-asset holdings as income from capital assets and have a 27.5% tax rate.

Crypto assets acquired before February 28, 2021, are treated as pre-existing holdings and not under the scope of the Reform. The previous tax rules apply to these assets. A stock tax rate of 27.5% applies when crypto-assets are sold for fiat, spent on goods and services, or mined.

About Scorechain

Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 45 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.

Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, Tron with TRC10 and TRC20 tokens, and BSC with BEP20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. In addition, 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.