As of today, the European Union regulation on markets for crypto assets(1) (MiCAR) fully applicable. As the responsible authority, Austria’s Financial Market Authority (FMA) is taking on the central role in the comprehensive regulation and supervision of the domestic crypto market. This new legal framework marks a further step towards greater integrity, transparency and reliability in an area of the financial market that has so far been growing rapidly but is also often opaque.
MiCAR aims to bring crypto assets and their issuers and service providers into a comprehensively regulated environment. This means that not only professional market participants but also consumers will benefit from a higher level of protection. “We expect the future supervised entities to adopt a consistent ‘compliance-first’ attitude,” explain FMA board members Helmut Ettl and Eduard Müller. “This means that compliance with the law, responsible business conduct and the protection of customers must be the top priority at all times. The Wild West era in crypto markets is over!”
FMA supervisory focus 2025: Clear standards, transparent procedures
From 2025, the FMA will place a particular focus on the approval procedures for providers of crypto asset services (Crypto-Asset Service Providers or CASP for short). Providers who want to provide services such as custody, exchange or advice regarding crypto assets must now meet strict criteria. This includes sufficient capital, robust risk management, appropriate internal control systems and transparent information about their business models. In this context, the FMA will pay greater attention to ensuring that the prescribed fit and proper requirements for owners, managers and other key functions are consistently implemented.
Regulation of Asset-Referenced Tokens (ART) and E-Money Tokens (EMT)
The MiCAR creates specific rules for so-called asset-referenced tokens (ART) and e-money tokens (EMT) and their issuers. The performance of these crypto assets is linked to other assets (e.g. raw materials, official currencies) and are also colloquially referred to as “stablecoins”. In the future, they should be subject to clear standards with regard to stability and consumer protection. Both with EMT, which imitate classic means of payment, and with ART, supervisory requirements for issuers such as capital resources, redemption rights and strict information requirements (white papers) are essential. The FMA expects issuers to consistently comply with these requirements.
Whitepaper for other crypto assets: Understandable and reliable information for everyone
Another requirement of MiCAR is the introduction of white papers as a central information tool. Anyone who offers crypto assets that do not fall under the ART or EMT categories is obliged to submit a clearly understandable white paper. This is intended to explain the essential features of the crypto asset, its technical basis, economic concept, risk factors as well as rights and obligations for investors. The FMA expects this information to be presented honestly, clearly and not misleadingly.
Consistent action against unauthorized providers, crypto fraud and money laundering
Investment fraud involving crypto assets is becoming an ever-increasing problem. The new regulation not only increases the requirements for reputable market participants, but also strengthens the sanctioning of unauthorized providers and improves transparency for investors. People or companies that provide crypto asset services without a license must expect strict supervisory measures and sanctions. As part of the MiCAR regime – including through ongoing exchanges with domestic and foreign supervisory authorities – the containment of crypto fraud, dubious business practices as well as money laundering and terrorist financing continues to be ensured through high supervisory standards.
Austrian crypto market: More security for consumers
With the entry into force of MiCAR and the strengthened role of the FMA as a supervisory authority, consumers on the Austrian crypto market should be able to rely on more security, transparency and legal clarity in the future. The FMA sees itself as a reliable partner for all market participants who are interested in a fair, orderly and customer-oriented business model. “We are convinced that compliance with all regulatory requirements is a central success criterion for providers,” said Ettl and Müller. “Compliance is not a sideshow, but the basis for sustainable trust and long-term market stability.”
Additional requirements through DORA: Increased technical and operational resilience
Parallel to MiCAR, the Digital Operational Resilience Act will also take place on January 17, 2025(2) (DORA) of the EU application. This regulation aims to significantly strengthen the IT security and operational resilience of financial market participants. For CASP, this means that in addition to the new MiCAR regulatory requirements, they must also demonstrate comprehensive technical security and crisis management concepts. The FMA expects companies to fully monitor and secure their IT systems, carry out regular stress tests and have clear emergency plans in order to remain able to act even in the event of cyber attacks or system failures. By using MiCAR and DORA in parallel, the Austrian crypto market will not only become more transparent and trustworthy, but also technologically safer.
You can find further comprehensive information about MiCAR on the FMA website. Consumers can find themselves in the FMA company database inform you whether a provider is licensed. The FMA publication series for consumers was dedicated to “Let’s talk about money”. already on the subject of trading platforms
(1)Regulation (EU) 2023/1114which in Austria with the MiCA Regulation Enforcement Act was implemented.
(2) Regulation (EU) 2022/2554