Austria will apply the principles of regulation of the gold and derivatives to cryptocurrency

Austria will apply the principles of regulation of the gold and derivatives to cryptocurrency

The Minister of Finance of Austria Hartwig Leger stated that the government intends to regulate the cryptocurrency in analogy with the existing rules of gold trading and derivatives, in order to prevent the use of cryptocurrencies as a means of laundering illicit funds.

During a meeting with the Finance Minister of Portugal, Mario Centeno in Brussels Leger discussed the action plan of the EU Commission regarding the formation of a working group to find solutions in the fight against fraud in the sphere of cryptocurrency.

Leger said, “what Happened in Austria is enough for me to begin to take action”, referring to recently disclosed a fraudulent scheme Optioment Bitcoin(BTC), which affected more than ten thousand investors in the country and throughout Europe.

The Finance Minister mentioned the establishment of the Council for the regulation of Fintech, which will be held in March, where cryptocurrency experts will discuss how regulation of the cryptocurrency will work with the EU institutions:

“Cryptocurrencies are a very important element in the fight against money laundering and the financing of terrorism. This is an important aspect for change which we support. We need more trust and more security”

The plan of Leger provides that cryptobia investors will have to report transactions worth more than $12 300 financial intelligence unit, and the platforms that trade cryptocurrency, will be monitored by the Austrian Supervisory authority over the financial market (FMA).

In addition, Initial placement of coins (ICO) should be classified as securities, which will receive the approval of the FMA. In relation to the ICO as stocks and bonds, to apply the rules designed to combat market manipulation and insider trading. FMA fully supports Hartwig Legera in this matter.

“Bitcoin transactions cannot be contained within a single state, and therefore it is necessary to regulate cryptocurrency, at least at the European level”, — said the Minister.

In mid-February, Regulators in the European Union has released another series of alerts to users, informing them about the high risks and “price bubble” specific to virtual currencies.

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