Crypto Regulations in Austria
Austria has not currently adopted specific legislation with respect to cryptocurrency-related business activities. Under current legislation, cryptocurrencies do not constitute legal tender for purposes of Austrian law.
Source: Freeman Law
In Austria, cryptocurrencies initially caused quite a headache for financial market regulators, in particular as no statutory definition of cryptocurrencies existed. Meanwhile, different definitions emerged that are used in the crypto space, such as “virtual currency”, “cryptocurrency”, “crypto assets”, “coin” or “token”. However, currently, there is only one legal definition for the term “virtual currency”, which was introduced by the 5th Money Laundering Directive (see Article 3 (18) (EU) 2018/843).
Source: Schoenherr.eu
Yes, cryptocurrency is legal in Austria, and you can buy, sell and use crypto without breaking the law. However, cryptocurrency is not currently considered legal tender in Austria, which means the Austrian government and Austrian businesses are not legally obligated to accept it as payment for goods and services.
Source: Yoreoyster
Austria has no domestic legislation that directly applies to virtual currencies, although operations using cryptocurrencies may fall under existing laws. For instance, platforms for purchasing crypto assets that settle payments in euros require a license under the Payment Services Act 2018. Purely technical services would not be covered by these licensing requirements, but would most likely be captured by the requirement for a general trade license necessary for carrying on a trade in Austria.
Source: Lexology
As part of the Environmentally Responsible Tax Reform (Ökosoziale Steuerreform) specific regulations on the taxation of cryptocurrencies will come into force on 1 March 2022. Under the new system, cryptocurrency holdings will be counted as income from capital assets and will be taxed at the special rate of 27.5%.
Source: BMF.gv.at
Cryptocurrencies are treated as investment assets in case the taxpayer uses them to generate interest income. In this case, capital gains from a subsequent sale are taxed at 27.5% for individuals (taxation at lower progressive income tax rates optional) or at 25% for corporations.
Source: Schoenherr.eu
There are generally no specific statutory requirements prescribing the circumstances under which Austrian citizens may lawfully exchange crypto assets on a foreign exchange. However, foreign crypto asset exchanges offering their services to Austrian citizens may become subject to Austrian laws and regulations. Presently, there are, however, no exchange controls, border restrictions, or obligations to declare holdings in crypto assets.
Source: Schoenherr.eu
The Austrian Finance Ministry is planning to apply a 27.5% capital gains levy on digital currencies, including bitcoin and ether.
Source: Coindesk
In recent years, Austria has seen a significant increase in Bitcoin mining activity. This is largely due to the country’s favorable laws and regulations regarding cryptocurrency mining. Additionally, Austria boasts a very strong and stable economy, which makes it an attractive destination for mining operations.
Source: Business World News
Austrian regulators call for stricter crypto regulations amid rising fraud Crypto scams appear to be dominating investment fraud cases in Austria.
Source: Cointelegraph
Austrian authorities are asking Interpol to help them track down suspects in an alleged Bitcoin scam that blew up last year and may have hit hundreds of investors in the country and abroad.
Source: Fortune
The amendment adds a new section 23a to the FMABG that directs the Austrian Financial Market Authority (FMA) to establish a regulatory sandbox for innovative businesses in the information and communication technology sector. This includes in particular FinTech companies, but also artificial intelligence and distributed ledger technology companies.
A regulatory sandbox is defined as a “scheme to enable firms to test, pursuant to a specific testing plan agreed and monitored by a dedicated function of the competent authority, innovative financial products, financial services or business models.” The Austrian regulatory sandbox is not a “license light,” but a way to test how the existing financial regulatory framework can be applied to innovative business models.
Source: Loc.gov
