Austria Considers New Regulatory Framework For Cryptocurrency

Austria Considers New Regulatory Framework For Cryptocurrency

Regulation
February 24, 2018 by Bitzamp
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Austria’s government has revealed its plan to develop a framework for the regulation of cryptocurrency applying the existing rules for trading gold and other derivatives in the country. Observing the cryptocurrencies volatile nature and its decentralized method of transactions, the Austria’s government noted that its major concern is to curb the use of these virtual
Austria Considers New Regulatory Framework For Cryptocurrency

Austria’s government has revealed its plan to develop a framework for the regulation of cryptocurrency applying the existing rules for trading gold and other derivatives in the country.

Observing the cryptocurrencies volatile nature and its decentralized method of transactions, the Austria’s government noted that its major concern is to curb the use of these virtual currencies for money laundering and other illegal activities.

The finance Minister, Hartwig Loeger has suggested that the current rules governing the trade of gold and other derivatives will prove efficient in preventing cryptocurrency being used for illicit transactions.

“Cryptocurrencies are increasingly important in the fight against money laundering and terrorist financing,”Finance Minister Hartwig Loeger said in a statement, according to a Bloomberg report. “This is important for the changes we support, we need more confidence and more security.”

Loeger also supported the idea of initial coin offering ICO being treated as securities, requiring cryptocurrency exchanges to register their businesses with financial supervisors and seek regulatory approval before they begin operations within the country.

The Finance Minister’s remarks follow a report of a bitcoin scam by an Australian-based investment scheme that saw 10000 investors lose about 12000BTC which is valued around $122 million at current exchange rate.

Regulators across Europe have increasingly being monitoring cryptocurrencies and related financial products in recent days. However, the European Commission had announced on Thursday that the key players of the central bank and market surveillance agents, as well as unnamed “market agents”, would have ameeting next week to discuss the prospect of an international regulatory framework on cryptocurrency.

 


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