Austrian FMA receives 40 applications from virtual asset businesses in one year
The Austrian Financial Market Authority (FMA) today reported that it received a total of 40 registration applications from virtual asset businesses during the first year where tougher anti-money laundering regulations were implemented.
About a year ago, anti-money laundering regulations were tightened for virtual asset service providers that provide their business activities in Austria or provide them in other countries from Austria. Since then, prior to the admittance of their business activities they have been required to register with the Austrian Financial Market Authority (FMA) and are subject to the due diligence and reporting obligations for the prevention of money laundering and terrorist financing.
Of the 40 applications for registration, 18 were approved. In the case of the 18 registered entities, the majority are service providers that operate electronic wallets and exchange platforms.
“The FMA pursues a zero-tolerance policy in relation to money laundering and terrorist financing. In relation to the risks associated with virtual currencies, another loophole was closed last year with the introduction of the requirement for companies active in this area to register,” remarked the FMA’s Executive Board Members Helmut Ettl and Eduard Müller.
The obligation to register is defined in the Financial Markets Anti-Money Laundering Act (FM-GwG; Finanzmarkt-Geldwäschegesetz) and has existed since January 10, 2020.
Where the FMA has indications that an entity is conducting an activity as a service provider in relation to virtual currencies without the required registration or that it is providing an activity requiring a licence without having one, then the regulator prohibits this activity without delay. In addition, offering services in relation to virtual currencies without a registration may be punished with a fine of up to €200,000.
Less than a fortnight ago, the FMA warned that around half of all fraud cases in 2020 were related to investments in crypto assets.