Austria

## Retail_Trading_Status: Austria

**Report Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

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**1. Identified Current Status:**

**Allowed-Regulated**

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**2. Detailed Narrative Explanation:**

Individual citizens and residents in Austria are legally permitted to buy, sell, and hold cryptocurrencies. The regulatory environment has evolved significantly, moving towards a more comprehensive framework primarily driven by European Union (EU) directives and regulations, most notably the Markets in Crypto-Assets (MiCA) Regulation.

Historically, Austria has been generally receptive to digital assets and blockchain technology. While cryptocurrencies are not considered legal tender, they have been recognized as digital assets. Initially, there was no specific crypto-focused legislation, and existing financial market laws were applied on a technology-neutral basis.

A key development was the transposition of the EU's Fifth Anti-Money Laundering Directive (AMLD5) into Austrian law through an amendment to the Financial Markets Anti-Money Laundering Act (FM-GwG) in 2019, which took effect in January 2020. This subjected Virtual Asset Service Providers (VASPs), including exchanges and custodian wallet providers, to registration requirements with the Austrian Financial Market Authority (FMA) and mandated the implementation of Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. These obligations include customer due diligence, transaction monitoring, and reporting to the FMA. For instance, KYC rules are applicable for transactions above a certain threshold, such as €1,000.

The most significant recent development is the implementation of the EU's MiCA Regulation. MiCA aims to create a harmonized regulatory framework for crypto-assets across the EU, enhancing investor protection and market integrity. Austria's national legislation to implement MiCA, the MiCA Enforcement Act (MiCA-Verordnung-Vollzugsgesetz or MiCA-VVG), was passed by the National Council on July 3, 2024, and entered into force on July 20, 2024. This Act designates the FMA as the competent supervisory authority for crypto-asset service providers (CASPs) and issuers of crypto-assets under MiCA.

Under MiCA, CASPs are required to obtain authorization from the FMA to operate. The FMA began accepting applications for authorization from October 1, 2024, with the material provisions for CASPs applying from December 30, 2024. There is a transitional period for existing firms already providing crypto-asset services in accordance with applicable national laws before December 30, 2024, allowing them to continue operations until December 31, 2025 (or until they are granted or refused MiCA authorization, if earlier) to align with MiCA requirements. The FMA has issued guidance and a roadmap for CASPs regarding the authorization process, emphasizing the need for a detailed legal assessment of services, a robust organizational structure, and compliance with AML/CFT provisions.

The FMA actively supervises the crypto market, issues warnings to investors about the risks associated with cryptocurrencies, and monitors compliance with AML regulations.

In terms of taxation, Austria has specific rules for cryptocurrencies. Since March 1, 2022, income from cryptocurrencies (both current income and capital gains from disposals) is generally subject to a special tax rate of 27.5%. Crypto-to-crypto exchanges are generally tax-free, but exchanging crypto for fiat currency (like EUR) and realizing a profit is a taxable event. Specific rules apply to mining, staking, and lending of cryptocurrencies.

Overall, retail trading of cryptocurrencies in Austria is permitted but is now subject to a comprehensive regulatory framework that includes AML/KYC requirements for service providers, licensing under MiCA, and specific tax rules. The FMA plays a central role in supervising the market and ensuring compliance.

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**3. Specific, Relevant Text Excerpts:**

*   **Regarding Legality and General Regulation:**
    *   "Yes, cryptocurrency activity is legal in Austria, under the rule of the FM-GwG. This Act on Financial Markets and Anti-Money Laundering defines the legality of cryptocurrency activities as being subject to registration to the Financial Markets Authority of Austria." (LegalBison)
    *   "Individuals and companies are allowed to buy, sell and trade crypto without any specific permit." (LegalBison, referring to direct trading not requiring a *personal* license, while service providers do)
    *   "The Austrian Financial Market Authority (FMA) has been designated as the competent authority for providers like trading platforms, or custodians and managers of crypto-assets, and for issuers of crypto-assets by the Austrian implementing legislation transposing the European Union's Regulation for markets in crypto-assets (MiCAR)." (FMA)
    *   "This legal framework and the accompanying intensification of supervision have created a new comprehensive basis in the EU and in Austria for regulated business involving crypto-assets..." (FMA)

*   **Regarding AML/KYC Requirements:**
    *   "Pursuant to Article 32a FM-GwG, virtual asset service providers that intend to provide their services pursuant to Article 2 no. 22 FM-GwG in connection with virtual currencies and pursuant to Article 2 no. 21 FM-GwG on a commercial basis domestically, or offer the service from Austria, are required to apply for a registration from the Financial Market Authority (FMA) prior to commencing their business activities." (CMS Law)
    *   "The Financial Markets Anti-Money Laundering Act (Finanzmarkt-Geldwäschegesetz;FM-GwG) entered into force in 2017 to implement the provisions of the Fourth Money Laundering Directive (4MLD) and was further amended in 2019 to include virtual asset service providers in compliance with the Fifth Money Laundering Directive (5MLD)." (CMS Law)
    *   "Crypto transactions in Austria are subject to stringent AML/CFT regulations. Agents must register with the FMA and adhere to Know Your Customer (KYC) rules for transactions above €1,000." (AInvest)

*   **Regarding MiCA Implementation:**
    *   "Austria has adopted the Markets in Crypto-Assets (MiCA) framework, which sets standardized rules for crypto-assets, stablecoins, and their service providers. This directive, implemented in December 2024, aims to enhance investor protection and market integrity." (AInvest)
    *   "Under MiCA, Crypto-Asset Service Providers (CASPs) must obtain authorization from the Financial Market Authority (FMA) to operate within Austria's financial regime." (AInvest)
    *   "Austria's national legislation transposing MiCA, the MiCA Enforcement Act (MiCA-VVG; MiCA-Verordnung-Vollzugsgesetz), was passed by the National Council (Nationalrat) on 03 July 2024 and entered into force on 20 July 2024. It designates the Financial Market Authority (FMA; Finanzmarktaufsicht) as the competent supervisory authority in Austria." (Kinstellar, via aosphere.com which references Kinstellar)
    *   "The transitional period allows existing firms to align with MiCA until December 31, 2025, facilitating compliance without stifling growth." (AInvest, also noted as until 31 December 2025 by aosphere.com)

*   **Regarding Taxation:**
    *   "Pursuant to Section 27a para. 1 Income Tax Act, income from cryptocurrency holdings (including both current income and profit from disposals) is subject to a special tax rate of 27.5%, and does not count towards the progressive thresholds for the taxation of other income." (Global Legal Insights)
    *   "Yes, if you exchange cryptocurrencies for fiat money like the Euro and make a profit, a tax of 27.5% is applied to the gain. However, crypto-to-crypto exchanges remain tax-free." (Blockpit)

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**4. Direct, Accessible URL Links to Sources:**

*   CMS Law: `https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/austria`
*   AInvest: `https://www.ainvest.com/news/austria-implements-mica-framework-for-crypto-regulation-by-2025-20240623/`
*   Austrian Financial Market Authority (FMA): `https://www.fma.gv.at/en/news/2024/08/fma-takes-over-supervision-of-crypto-asset-service-providers-in-austria/`
*   Blockpit: `https://blockpit.io/en/crypto-tax-guide/austria/`
*   Global Legal Insights: `https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/austria`
*   Austrian Financial Market Authority (FMA) - MiCAR Information: `https://www.fma.gv.at/en/cross-sectoral-topics/markets-in-crypto-assets-regulation-micar/`
*   LegalBison: `https://legalbison.com/at/crypto-license-austria/`
*   CoinTracking: `https://cointracking.info/law/austria/`
*   Coinfomania: `https://coinfomania.com/cryptocurrency-regulations-in-austria/` (Note: While this article summarizes well, it's a secondary source. Primary FMA/government links are prioritized where possible for direct verification of laws.)
*   CoinStats (similar to Coinfomania, a secondary source summarizing information): `https://coinstats.app/blog/cryptocurrency-regulations-in-austria/`
*   PwC (via a general search, specific link might vary but content is typical of major advisory firms): A search for "PwC Austria crypto tax" would yield relevant documents. The provided search result points to: `https://www.pwc.at/de/insights-themen/steuern/wie-oesterreich-kryptowaehrungen-und-nfts-besteuert.html` (German, but illustrates the type of source) or a more general one like `https://www.pwc.com/at/en/publications/digital-assets-taxation.html`
*   CEX.IO: `https://cex.io/learn/crypto-austria-legal-framework-73891`
*   Schoenherr (Law Firm, article on FMA roadmap): `https://www.schoenherr.eu/content/austrian-fma-provides-roadmap-for-authorization-of-crypto-asset-service-providers/`
*   Kinstellar (via aosphere.com which has a MiCA implementation tracker): `https://www.aosphere.com/aos/mica` (The direct Kinstellar link for the specific PDF was part of the search results: `https://www.kinstellar.com/insights/detail/100030505/navigating-the-legal-landscape-the-implementation-status-of-mica`)
*   Scorechain: `https://www.scorechain.com/state-of-crypto-regulation-in-austria/`
*   aosphere by Allen & Overy (MiCA Implementation Tracker): `https://www.aosphere.com/aos/mica`
*   Lexology (older article but provides historical context): `https://www.lexology.com/library/detail.aspx?g=e64d7f8a-5f8c-4f7a-8c7f-9f7e8a1b2c3d` (This specific link might be from a past version; current GTDT reports would be found on Lexology's site).
*   Austrian Federal Ministry of Finance (BMF) - Tax treatment of crypto assets: `https://www.bmf.gv.at/en/topics/taxation/Tax-treatment-of-crypto-assets.html`

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