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Austria

Retail_Trading_Status

Allowed-Regulated Unknown
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2025-06-26 13:00
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Executive Summary

Retail cryptocurrency trading is legally permitted in Austria and is subject to specific regulations. The Austrian Financial Market Authority (FMA) supervises crypto businesses under AML/CFT legislation and is designated as the competent supervisory authority under the EU's MiCA regulation, transposed into national law through the MiCA Enforcement Act (MiCA-VVG). CASPs are required to obtain authorization from the FMA, with full compliance expected by December 31, 2025. Austria also has specific tax rules for cryptocurrencies, with capital gains taxed at a flat rate of 27.5%.

Key Pillars

The key regulatory pillars in Austria include: (1) The Austrian Financial Market Authority (FMA) as the primary regulator and competent supervisory authority. (2) Implementation of Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) legislation, including the Fifth Money Laundering Directive (AMLD5), requiring VASPs to conduct customer due diligence (KYC), record-keeping, transaction monitoring, and report suspicious activities. KYC rules apply for transactions above €1,000. (3) Licensing requirements for Crypto-Asset Service Providers (CASPs) under the EU's MiCA regulation, transposed into national law through the MiCA Enforcement Act (MiCA-VVG), requiring authorization from the FMA to operate.

Landmark Laws

  1. Fifth Money Laundering Directive (AMLD5): Implemented to bring virtual asset service providers (VASPs) under AML/CFT obligations, including KYC, record-keeping, transaction monitoring, and reporting suspicious activities.
  2. Markets in Crypto-Assets (MiCA) regulation: Aims to create a harmonized European regulatory framework for crypto-assets, enhancing investor protection and market integrity; effective since December 30, 2024.
  3. MiCA Enforcement Act (MiCA-VVG): Austria's national legislation transposing MiCA, passed by the National Council on July 3, 2024, and entered into force on July 20, 2024. It designates the FMA as the competent supervisory authority in Austria.
  4. Banking Act (BWG), Securities Supervision Act (WAG 2018), and Payment Services Act (ZaDiG 2018): Austrian laws under which business models involving crypto-assets may be subject to licensing requirements, depending on the specific product features and services offered.
  5. Income Tax Act: Defines a cryptocurrency as 'a digital representation of value that is not issued or guaranteed by any central bank or public authority and is not necessarily pegged to a legally established currency and does not have the legal status of currency or money but is accepted by natural or legal persons as a medium of exchange and can be transmitted, stored and traded electronically'.

Considerations

  1. Legal Classification: Cryptocurrencies are defined as a 'digital representation of value' under the Income Tax Act and were classified as a mode of payment in 2019.
  2. Tax Treatment: Income from cryptocurrency holdings is subject to a special tax rate of 27.5% for crypto assets acquired after February 28, 2021. Crypto-to-crypto exchanges are generally tax-free until conversion to fiat currency. Since January 1, 2024, domestic service providers have been required to automatically deduct the capital gains tax (KESt) for individuals residing in Austria.
  3. Risks and Concerns: The FMA regularly issues warnings to investors about the risks associated with cryptocurrencies and unlicensed providers.
  4. AML/CFT Regulations: Crypto transactions are subject to stringent AML/CFT regulations, with agents required to register with the FMA and adhere to Know Your Customer (KYC) rules for transactions above €1,000.

Notes

  1. Historical Context: Austria classified cryptocurrencies as a mode of payment in 2019.
  2. Future Plans: The FMA has established a fintech contact point and a regulatory sandbox to assist new business models.
  3. Transitional Period: A transitional period allows existing firms to align with MiCA requirements until December 31, 2025.
  4. FMA Authorization: The FMA began accepting applications for CASP authorization in October 2024, with authorized services commencing from December 30, 2024.

Detailed Explanation

Retail cryptocurrency trading is legally permitted in Austria, subject to increasing regulations. The Austrian Financial Market Authority (FMA) has been supervising crypto businesses under Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) legislation since 2020, implementing the Fifth Money Laundering Directive (AMLD5). This involves customer due diligence (KYC) for transactions above €1,000, record-keeping, transaction monitoring, and reporting suspicious activities to the FMA. In 2019, Austria classified cryptocurrencies as a mode of payment.

The most significant development is the implementation of the EU's Markets in Crypto-Assets (MiCA) regulation. Austria transposed MiCA into national law through the MiCA Enforcement Act (MiCA-VVG), which entered into force on July 20, 2024. MiCA aims to create a harmonized European regulatory framework for crypto-assets, enhancing investor protection and market integrity. Under MiCA, Crypto-Asset Service Providers (CASPs) are required to obtain authorization from the FMA to operate in Austria. The FMA has been designated as the competent supervisory authority.

The FMA began accepting applications for CASP authorization in October 2024, with authorized services commencing from December 30, 2024. A transitional period allows existing firms to align with MiCA requirements, with full compliance and FMA authorization expected by December 31, 2025. The FMA has adopted a 'technology-neutral' supervisory approach, applying existing financial services regulations where applicable, based on the principle of 'same risk – same rules'. Business models involving crypto-assets may be subject to licensing requirements under various Austrian laws, including the Banking Act (BWG), Securities Supervision Act (WAG 2018), and Payment Services Act (ZaDiG 2018), depending on the specific product features and services offered. The FMA regularly issues warnings to investors about the risks associated with cryptocurrencies and unlicensed providers.

In terms of taxation, Austria has specific rules for cryptocurrencies. Income from cryptocurrency holdings, including gains from disposals and current income like staking or lending rewards, is generally subject to a special tax rate of 27.5%. This tax regime came into effect for cryptocurrencies acquired after February 28, 2021. Crypto-to-crypto exchanges are generally considered tax-free events until conversion to fiat currency. Since January 1, 2024, domestic service providers have been required to automatically deduct the capital gains tax (KESt) for individuals residing in Austria. According to the Income Tax Act, a cryptocurrency is defined 'as a digital representation of value that is not issued or guaranteed by any central bank or public authority and is not necessarily pegged to a legally established currency and does not have the legal status of currency or money but is accepted by natural or legal persons as a medium of exchange and can be transmitted, stored and traded electronically'. The Austrian government and financial regulators are generally receptive to digital assets and new technologies, aiming to foster innovation while ensuring investor protection, market integrity, and AML/CFT compliance. The FMA has established a fintech contact point and a regulatory sandbox to assist new business models.

Summary Points

Retail Trading of Cryptocurrencies in Austria: Regulatory Overview (2025)

I. General Regulatory Status:

  • Allowed-Regulated: Retail cryptocurrency trading is legal in Austria but subject to increasing regulation.
  • Proactive Approach: Austria is actively developing a comprehensive regulatory framework for crypto assets.
  • EU Alignment: Driven by European Union directives, particularly the Markets in Crypto-Assets (MiCA) regulation.

II. Key Regulatory Bodies and Their Roles:

  • Austrian Financial Market Authority (FMA):
    • Supervises crypto businesses under AML/CFT legislation since 2020.
    • Designated as the competent supervisory authority under MiCA.
    • Responsible for authorizing Crypto-Asset Service Providers (CASPs).
    • Issues warnings to investors about crypto risks.
    • Operates a fintech contact point and regulatory sandbox.

III. Important Legislation and Regulations:

  • Fifth Money Laundering Directive (AMLD5):
    • Brought Virtual Asset Service Providers (VASPs) under AML/CFT obligations.
  • Markets in Crypto-Assets (MiCA) Regulation:
    • EU regulation creating a harmonized framework for crypto-assets.
    • Aims to enhance investor protection and market integrity.
  • MiCA Enforcement Act (MiCA-VVG):
    • Austria's national legislation transposing MiCA.
    • Entered into force on July 20, 2024.
  • Other Relevant Laws:
    • Banking Act (BWG)
    • Securities Supervision Act (WAG 2018)
    • Payment Services Act (ZaDiG 2018)
    • Applicability depends on specific product features and services.
    • Income Tax Act (governs crypto taxation)

IV. Requirements for Compliance:

  • AML/CFT Obligations:
    • Customer Due Diligence (KYC)
    • Record-keeping
    • Transaction monitoring
    • Reporting suspicious activities to the FMA
  • KYC Threshold: KYC rules apply for transactions above €1,000.
  • CASP Authorization (Under MiCA):
    • Crypto-Asset Service Providers (CASPs) must obtain authorization from the FMA to operate in Austria.
    • Applications accepted from October 1, 2024.
    • Authorized services commencing from December 30, 2024.
    • Full compliance and FMA authorization expected by December 31, 2025.

V. Notable Restrictions or Limitations:

  • Licensing Requirements: Business models involving crypto-assets may be subject to licensing requirements under various Austrian laws (BWG, WAG 2018, ZaDiG 2018).
  • FMA Warnings: The FMA regularly issues warnings about the risks associated with cryptocurrencies and unlicensed providers.

VI. Recent Developments or Changes:

  • MiCA Implementation: Austria transposed MiCA into national law through the MiCA-VVG, effective July 20, 2024.
  • CASP Authorization Process: The FMA began accepting applications for CASP authorization in October 2024, with authorized services commencing from December 30, 2024.
  • Taxation:
    • Income from crypto holdings is subject to a special tax rate of 27.5% (for assets acquired after February 28, 2021).
    • Crypto-to-crypto exchanges are generally tax-free until conversion to fiat currency.
    • Losses from crypto assets can be offset against other capital income.
    • Domestic service providers are required to automatically deduct the capital gains tax (KESt) for individuals residing in Austria (since January 1, 2024).

VII. General Stance:

  • Receptive to Digital Assets: The Austrian government and regulators are generally receptive to digital assets and new technologies.
  • Balancing Innovation and Protection: Aims to foster innovation while ensuring investor protection, market integrity, and AML/CFT compliance.
  • Technology-Neutral Approach: Applies existing financial services regulations where applicable ("same risk – same rules").

Full Analysis Report

Report on Retail Trading Status of Cryptocurrencies in Austria

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).

Retail_Trading_Status in Austria

Identified Status: Allowed-Regulated

Detailed Narrative Explanation:

Retail cryptocurrency trading is legally permitted in Austria and is subject to a growing body of specific regulations. The country has been proactive in addressing the crypto space, moving towards a comprehensive regulatory framework primarily driven by European Union directives, particularly the Markets in Crypto-Assets (MiCA) regulation.

Historically, Austria classified cryptocurrencies as a mode of payment in 2019. Since 2020, the Austrian Financial Market Authority (FMA) has been supervising crypto businesses under Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) legislation. This involved the implementation of the Fifth Money Laundering Directive (AMLD5), which brought virtual asset service providers (VASPs) under AML/CFT obligations. These obligations include customer due diligence (Know Your Customer - KYC), record-keeping, transaction monitoring, and reporting suspicious activities to the FMA. Specifically, KYC rules are applied for transactions above €1,000.

The most significant recent development is the implementation of the EU's MiCA regulation. Austria transposed MiCA into national law through the MiCA Enforcement Act (MiCA-VVG), which entered into force on July 20, 2024. MiCA aims to create a harmonized European regulatory framework for crypto-assets, enhancing investor protection and market integrity. Under MiCA, Crypto-Asset Service Providers (CASPs) are required to obtain authorization from the FMA to operate in Austria. The FMA has been designated as the competent supervisory authority. A transitional period allows existing firms to align with MiCA requirements, with full compliance and FMA authorization for all CASPs expected by December 31, 2025. The FMA began accepting applications for CASP authorization in October 2024, with authorized services commencing from December 30, 2024.

The FMA has adopted a "technology-neutral" supervisory approach, applying existing financial services regulations where applicable, based on the principle of "same risk – same rules". Business models involving crypto-assets may be subject to licensing requirements under various Austrian laws, including the Banking Act (BWG), Securities Supervision Act (WAG 2018), and Payment Services Act (ZaDiG 2018), depending on the specific product features and services offered. The FMA regularly issues warnings to investors about the risks associated with cryptocurrencies and unlicensed providers.

In terms of taxation, Austria has specific rules for cryptocurrencies. Income from cryptocurrency holdings, including gains from disposals and current income like staking or lending rewards, is generally subject to a special tax rate of 27.5%. This tax regime came into effect for cryptocurrencies acquired after February 28, 2021. Crypto-to-crypto exchanges are generally considered tax-free events until conversion to fiat currency. Losses from crypto assets can, in principle, be offset against other capital income. Since January 1, 2024, domestic service providers have been required to automatically deduct the capital gains tax (KESt) for individuals residing in Austria.

The Austrian government and financial regulators are generally receptive to digital assets and new technologies, aiming to foster innovation while ensuring investor protection, market integrity, and AML/CFT compliance. The FMA has established a fintech contact point and a regulatory sandbox to assist new business models.

Specific, Relevant Text Excerpts:

  • Global Legal Insights (October 25, 2024): "Austrian financial regulators and policymakers are generally receptive to digital assets, new technologies and fintech... On a national level, MiCA is implemented in the MiCA-Verordnung-Vollzugsgesetz (“MiCA-VVG”). It designates the FMA as the competent authority... Moreover, certain providers of services concerning cryptocurrencies are currently subject to AML, KYC and customer due diligence requirements, reporting obligations and prior registration as VASPs with the FMA..."
  • AInvest (June 23, 2025): "Austria has established itself as a forward-thinking leader in the cryptocurrency space, balancing innovation with robust regulatory frameworks. The country 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. Under MiCA, Crypto-Asset Service Providers (CASPs) must obtain authorization from the Financial Market Authority (FMA) to operate within Austria's financial regime. The transitional period allows existing firms to align with MiCA until December 31, 2025..."
  • AInvest (June 23, 2025): "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... Austria's crypto tax rules are clear and straightforward. Capital gains from crypto transactions are taxed at a flat rate of 27.5%."
  • CMS Law (undated, referencing MiCAR applicability from December 30, 2024): "Legal entities or companies planning to offer crypto-asset services in Austria must submit an application to the Austrian Financial Market Authority (FMA) for authorization as a crypto-asset service provider. Applications can be submitted starting from October 1, 2024... If authorization is granted, the company can begin providing its crypto-asset services starting December 30, 2024."
  • CEE Legal Matters (March 31, 2025): "The implementation of the EU's Markets in Crypto-Assets (MiCAR) regulation, effective since December 30, 2024, has ushered in a new era for crypto-asset service providers (CASPs) in Austria. The Financial Market Authority (FMA) now oversees this sector, providing a clear regulatory framework that enhances Austria's attractiveness for crypto businesses. Under MiCAR, all CASPs must obtain FMA authorization to operate legally."
  • FMA Österreich (undated, referencing MiCA): "The Regulation of the European Parliament and of the Council on markets in crypto-assets... (MiCAR) the European Union has enacted a harmonised legal framework for the market in crypto-assets... 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 FMA as the competent supervisory authority in Austria."
  • Income Tax Act (as cited by Global Legal Insights, October 25, 2024): "According to the Income Tax Act, a cryptocurrency is defined 'as a digital representation of value that is not issued or guaranteed by any central bank or public authority and is not necessarily pegged to a legally established currency and does not have the legal status of currency or money but is accepted by natural or legal persons as a medium of exchange and can be transmitted, stored and traded electronically'."

Direct, Accessible URL Links to Sources:

  • Global Legal Insights - Blockchain & Cryptocurrency Laws and Regulations 2025 – Austria: https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/austria (Note: While the link itself is general, the content reflects the specific information cited from the 2025 chapter, published October 25, 2024)
  • AInvest - Austria Implements MiCA Framework for Crypto Regulation by 2025: https://www.ainvest.com/news/austria-implements-mica-framework-for-crypto-regulation-by-2025/ (Specific article link may vary, search within the domain for the title if needed)
  • CMS Law - CMS Expert Guide to Crypto Regulation in Austria: https://cms.law/en/aut/expert-guides/cms-expert-guide-to-crypto-regulation/austria (Specific article link may vary, search within the domain for the title if needed)
  • Blockpit - Crypto Taxes Austria: Complete Instructions: https://blockpit.io/blog/crypto-taxes-austria-complete-instructions/
  • CEE Legal Matters - Austria’s Evolving Crypto and Banking Landscape: A 2025 Perspective: https://ceelegalmatters.com/austria/27015-austria-s-evolving-crypto-and-banking-landscape-a-2025-perspective (Specific article link may vary, search within the domain for the title if needed)
  • Koinly - Crypto Tax Austria: Ultimate Guide 2025: https://koinly.io/guides/crypto-tax-austria/
  • CoinTracking - Crypto Tax Austria – Tax Guide for 2025: https://cointracking.info/taxes/austria/
  • Freeman Law - Austria and Cryptocurrency: https://freemanlaw.com/austria-and-cryptocurrency/
  • Coinfomania - Cryptocurrency Regulations in Austria: https://coinfomania.com/cryptocurrency-regulations-in-austria/ (Specific article link may vary, search within the domain for the title if needed)
  • CoinStats - Cryptocurrency Regulations in Austria: https://coinstats.app/blog/cryptocurrency-regulations-in-austria/ (Specific article link may vary, search within the domain for the title if needed)
  • Bitvavo - Crypto and tax in Austria: https://support.bitvavo.com/hc/en-gb/articles/13309999009041-Crypto-and-tax-in-Austria
  • Kinstellar - Navigating the Legal Landscape The Implementation Status of MiCA: https://www.kinstellar.com/insights/detail/1603/navigating-the-legal-landscape-the-implementation-status-of-mica (Link to a general publication, specific page for Austria may need navigation)
  • CoinStats - Cryptocurrency Regulations in Austria (appears to be a duplicate or very similar to but listed as a separate search result): https://coinstats.app/blog/cryptocurrency-regulations-in-austria/
  • FMA Österreich - Markets in Crypto-Assets Regulation (MiCAR): https://www.fma.gv.at/en/cross-sectoral-topics/digitalisation/markets-in-crypto-assets-regulation-micar/
  • Scorechain - State of crypto regulation in Austria: https://www.scorechain.com/state-of-crypto-regulation-in-austria/
  • Coincub - Best Crypto Exchange Austria: Regulated, Legal, Lowest Fee: https://coincub.com/country/austria-crypto-exchange-guide/ (Specific article link may vary, search within the domain for the title if needed)

Web Sources (16)

Sources discovered via web search grounding

Search queries used (6)
  • current status retail cryptocurrency trading Austria
  • Austria cryptocurrency laws and regulations 2024 2025
  • AML KYC requirements cryptocurrency Austria
  • taxation of cryptocurrency Austria for individuals
  • FMA Austria cryptocurrency guidance
  • MiCA regulation Austria implementation status
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