Virtual Currency Regulation In 2020: Shedding Light On Austria's Blockchain Landscape

The recent presentation of the draft Electronic Securities Act (Gesetz über elektronische Wertpapiere, eWpG) by German lawmakers, has reignited debates surrounding the adequacy of the existing Austrian financial services and securities law framework and the adoption of measures supporting the digitalisation of its capital markets. Unlike its neighbour, Austria has thus far refrained from establishing a specific regulatory regime governing crypto-related activities or transactions.

The following will consider the current legal mechanisms governing blockchain-based financial services in Austria. While intended as a short overview concerning the jurisdiction's general approach to the regulation of cryptoassets and fintech businesses, matters such as taxation, data protection and money-laundering will also be briefly touched upon.