Austria is Planning New Regulation for Blockchain Technology Operation

Austria plans to make use of its model existing rules for the trading of Gold to institute new regulations to help regulate cryptocurrencies, ICOs and other related Blockchain technology activities.

Austria joins a growing list of countries enacting progressive-workable regulations around cryptocurrencies and blockchain technology as a whole.

According to Bloomberg, the government’s main motivation for this is to help curb the issues of money laundering that may occur with increase in cryptocurrency usage.

“Cryptoccurencies are significantly gaining importance in the fight against money laundering and terrorism financing,” Austria’s Finance Minister Hartwig Loeger says. He further states that a regulatory framework will help bring more trust and security into the usage of cryptocurrencies in Austria.

The minister also outlined measures that the government will put in place which such as crypto currency traders doing volumes of above 10,000 Euros will have to disclose their trades to the government’s financial intelligence unit.

He further states that the regulation will also cover Initial Coin Offerings (ICOs). Loeger says that the government will apply the existing rules that pertain with market manipulation, insider trading and front-running to the ICO market. Austrian ICO organizers will be expected to submit a digital prospectus of their project to the Financial Market Authority (FMA).

The Austrian Finance Minister has gone on to request that the larger European Union block sets up crytocurrency regulation to help reduce issues of money laundering whiles fostering innovation in the space. The European commission announced earlier that the leading central banks and other top financial players will meet this week to discuss issues with regards to cryptocurrency markets.