Crypto License in Austria
Assistance in getting the Austrian CASP license and establishing your presence in Austria and Europe. Request a quotation and more information directly to our team.
- One of the best reputed jurisdiction in financial services
- Allows for a smooth transition to MiCA
- Permits the issuance of security tokens (under conditions)
- Straightforward framework for stablecoins
Legal experts in designing solutions for crypto licensing worldwide.
Blockchain enthusiast and expert on cryptocurrency and FinTech related laws.
Crypto regulation/legislation in Austria
Austria is one of the leading European economies and most prestigious jurisdictions. Home of numerous banking and financial institutions, Austria has also tipped on the startup and FinTech side. Among the flagships of this new industry, BitPanda is proudly representing the cryptocurrency sector and showcasing what this Central European country offers to crypto businesses.
In this 2024 guide to the crypto license in Austria, we will cover all the necessary information on the matter of starting a virtual asset business. What are the requirements, the pricing, the laws in force, the compliance obligations, etc.
About the regulation of crypto companies in Austria
To provide services related to crypto in Austria, a license under the form of a registration as a virtual currency service provider to the Financial Markets Authority (FMA) is necessary.
This licensing regime was implemented in early 2020 through the application of the 5th European directive about Anti-Money Laundering, which provides a framework for regulating crypto companies. This directive has not been applied in every European member state.
The directive was enforced as an amendment to the FM-GwG, the Law on Financial Markets and Anti-Money Laundering, which implements the details of the VASP regime to Austria. It also defines the FMA as the regulatory body for crypto activities.
As of the beginning of 2024, less than 20 crypto licenses were granted in Austria, but including important European players such as BitPanda. Showcasing an Austrian crypto license demonstrates a high level of reliability, as it is a highly regarded jurisdiction for everything financial.
There are no minimum share capital requirements to get the VASP license in Austria.
Crypto is not considered legal tender in Austria.
What is the process to get the Austrian crypto license?
The process for obtaining a crypto license in Austria is straightforward despite a timeline ranging above 6 months on average.
The process is mainly internal, as the project should structure itself in a way that is compliant with the Austrian crypto law. In concrete terms, this means, among other things:
- The formation of an Austrian (or European) company;
- The appointment of a fit and proper board;
- The nomination of an AML officer with relevant qualifications;
- The preparation of AML-KYC policies and procedures;
- The setting up of due diligence systems and rules;
- The creation of training material and manuals for employees.
Once all the criteria set by the FMA are met, the application process can begin. A notification for application is carried out digitally to the regulatory authorities for inspection. A conversation will then begin between the applicant and its lawyer or legal advisor and the Austrian crypto regulator.
As the application is duly completed, all the necessary information are provided and checked, the Austrian crypto license is granted and the company is registered into the registry of Austrian VASPs.
What are the different crypto licenses available in Austria?
There is a single type of cryptocurrency license in Austria, delivered by the Financial Markets Authority. The official name of this license is a registration as a virtual currency service provider.
This license allows a crypto company to provide the following types of services:
- services to safeguard private cryptographic keys, to hold, store and transfer virtual currencies on behalf of a customer (custodian wallet providers);
- exchanging of virtual currencies into fiat currencies and vice versa;
- exchanging or one or more virtual currencies between one another;
- transferring of virtual currencies;
- the provision of financial services for the issuance and selling of virtual currencies (in connection with an ICO or ITO, for example).
However, Austria offers the necessary regulatory framework to offer more complex crypto services and products.
Stablecoins under the MiCA Regulation (ART & EMT)
The FMA has undertaken a significant effort to smoothen the transition to the upcoming MiCA regulation. In that regard, part of its crypto assets service providers regulation is already in line with the Regulation (EU) 2023/1114 on markets in crypto-assets.
MiCA and therefore the Austrian regulator distinguishes two potential sorts of stablecoins:
- Asset-referenced tokens (ART), if its value is pegged to more than one (1) fiat currency, to physical assets, to other crypto assets or to a mixed bag of assets.
- E-money tokens (EMT), if its value is pegged to a single fiat currency, such as the most famous stablecoins USDT and USDC.
Important note: the regulatory scope for issuing such crypto assets goes beyond a simple CASP license in Austria.
For more details on the necessary licensing and provisions to legally issue stablecoins in Austria, our FinTech lawyers are available to answer your questions.
Security Tokens
Security tokens are legal in Austria, provided that the issuer has received an approved capital market prospectus from a qualified law firm.
Security tokens are crypto assets whose underlying value is analogous to a security, such as a company share providing voting rights and potential dividends. Such crypto assets can be issued to raise funds and onboard investors, in the same way as an Initial Public Offering (IPO) would on traditional capital markets.
The issuance of security tokens is subject to European regulation MiFiD II and thereby requires diligent legal work beforehand. Contact our legal team for more information on the process.
Staking Products
The legality of staking is often tricky and the classification of such services can vary from one project to another and from one jurisdiction to another.
Staking services are legal in Austria, but their regulation takes various forms depending on the staking products to be offered by your project. It may fall under the scope of Funds regulation or even Banking regulations. Some staling products can also not fall into such heavy legislation.
LegalBison can assist with the classification and guidance in restructuring your staking service in order to potentially optimize its legality and lawful operation.
Crypto Derivatives
As for security tokens, most crypto derivatives in EU countries fall into the scope of MiFiD II and require subsequent licensing, which is possible in Austria, in addition to a crypto license.
A few subcategories of crypto derivatives might fall under national regulation such as the Austrian Capital Markets Act 2019 or the Austrian Payment Services Act.
Either way, the key to legally and successfully offer crypto derivatives in Austria is proper legal preparation and licensing. Once again: a crypto license in Austria is not enough by itself to offer such products to the public. LegalBison can advise on the required steps to legally provide crypto derivatives to your markets with an Austrian structure.
They made it work with LegalBison
Very proactive, responsive, and able to provide solutions and advice. The firm is familiar with the new industry of blockchain and cryptocurrency
As a result of the fruitful cooperation with LegalBison, Yellow Card obtained a VASP registration, fast and without any legal complications.
Best company for Crypto Licenses! Kudos to the team for making the incorporation of our company really smooth
The team of LegalBison was very helpful and fast in supporting my company’s structural set up. They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!
LegalBison excels at adapting to challenges and demonstrates a perfect understanding of our business needs.
I highly recommend Legal Bison to any entrepreneur or business seeking top-notch services for their company formation. Their commitment to excellence and customer satisfaction is truly commendable.
Packages Crypto License in Austria
Discover our packages to structure your crypto company in Austria:
Legal experts in designing solutions for crypto licensing worldwide.
+44 20 4577 0974
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Free consultation call about crypto licensing in Austria.
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Initial consultation with our experts
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Formation of a company in Austria
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Legal address in Austria
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AML-KYC policies and procedures in-line with the FMA expectations
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Necessary legal & compliance documents
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Full legal support after licensing
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Assistance in opening a bank account
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Assistance in issuing security tokens and/or stablecoins
Creation of a licensed crypto company from scratch in Austria.
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Initial consultation with our experts
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Formation of a company in Austria
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Legal address in Austria
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AML-KYC policies and procedures in-line with the FMA expectations
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Necessary legal & compliance documents
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Full legal support after licensing
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Assistance in opening a bank account
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Assistance in issuing security tokens and/or stablecoins
Ready-made crypto company in Austria
Inquire now about available ready-made crypto companies in Austria. Pricing and details on request only. Reach out to our team for more information.
How to obtain a crypto license in Austria
The step-by-step process to obtain a crypto license in Austria consists of 4 stages, the application being carried out only in one of the last part of the procedure. The whole process takes a minimum of 6 months, with registration cases being reported to last over a year.
GATHERING DOCUMENTS FROM THE CLIENT TO START THE PROCESS
The document set that should be prepared and provided to the legal service company assisting your crypto project is comprehensive and short. Its main aim is to disclose the identity and competence of the project’s participants, in order to safely conduct their crypto business.
- Identification documents of directors (passport, proof of residency, driving license…);
- A certificate of non-criminal record from the jurisdiction of residency can be required;
- Resume or reference letters, demonstrating professional capacity;
- AML policies and procedures, compliant with the updated FM-GwG text.
REGISTRATION OF A (LIMITED LIABILITY) COMPANY IN AUSTRIA
Though any company formed within the European Union can legally apply for a crypto license in Austria, we advise the registration of a domestic company.
- Registration of a company in the limited liability form in Austria;
- It is possible to receive the set of apostilled corporate documents for an Austrian crypto company by mail/scan;
- Legal address for the company registered in Austria.
APPLYING FOR THE CRYPTO LICENSE IN AUSTRIA
Becoming a VASP in Austria requires sending out a full application to the Financial Market Authority of Austria.
- Demonstrate ability to perform due diligence and Know-Your-Customer duties;
- Appoint an FMA-qualified AML officer for Compliance duties;
- Drafting of policies and procedures for the monitoring and reporting of transactions;
- Demonstration of fitness & property, as well as professional qualifications, of team members.
OPENING A B2B AND B2C CORPORATE ACCOUNT
A crypto licensed company is many times more likely to successfully be allowed to open a bank account for its activity, than a non-regulated one. With a crypto license in Austria, it becomes realistic to open corporate and payment accounts within one to two months.
Reach out now for a free consultation
- Contact our team to receive a free invitation to a video call, in order to assess your project and design the most efficient solution around it.
Crypto Asset Service Provider license in Austria
The minimum requirements for a crypto license in Austria are:
- Legal entity registration in Europe
- Detailed identification (ID, resume) of all directors and beneficial owners
- Detailed business plan
- Ownership and internal structure chart
- AML-CFT and KYC policies and procedures in line with the FM-GwG law
- Appointment of a qualified AML officer (must pass an FMA exam)
- Payment of the application fee of 3.000 EUR
- Establishing a trusted contact with the FMA
- Answering all the requests for additional information
- Fit and proper check of all participants
- Crypto Law and Regulation
- Licensing process
- Requirements
- Company registration
- Taxation
- Obligations
- Sanctions
The legality of cryptocurrency business in Austria
Cryptocurrency business is legal in Austria, regulated since January 2020 and the enforcement of the 5th European Money Laundering Directive (5MLD). This European directive implements virtual assets into the rules pertaining to anti-money laundering.
A European directive is a proposal formulated within the European Union that can be enforced by the member states if they wish to. Austria has decided to enforce the 5MLD and this has laid out the basis of the legality of cryptocurrency business in Austria.
The AML regulation was implemented in the FM-GwG (Finanzmarkt-Geldwäschegesetz, English: Financial Markets Anti-Money Laundering Act) as amended in 2019.
The Act makes cryptocurrency business legal in Austria by defining why and how it has to be regulated, as well as by whom. The Austrian Financial Money Authority (FMA) is subsequently designated as the qualified regulatory authority and supervisor of licensed crypto companies in Austria.
Cryptocurrency regulation in Austria
The cryptocurrency regulation in Austria is based on the FM-GwG’s 2019 amendment, which implements the 5th European directive about Money Laundering. This directive added guidance for regulators to permit and supervise virtual asset service providers.
The regulation establishes the requirement for a VASP to register with the FMA, in order to legally provide their services in Austria. The Act lays out the criteria to be met by the company before, during and after application to a crypto license.
This cryptocurrency regulation will be in force in Austria until the voting and enforcement of MiCA (Markets in Crypto Assets) at the level of the whole European Union.
Contact LegalBison’s FinTech lawyers team for the latest up-to-date information and advice on managing the transition to the MiCA regulation.
Austria Virtual Cryptocurrency Registry
Every company registered as a virtual asset service provider in Austria is listed into the regulator’s virtual cryptocurrency registry. Accessible through the database of the Financial Markets Authority, the register lists all the licensed companies, whether based in Austria or in another EU member state.
Each cryptocurrency company listed in the registry is shown to the public, with its office address and license number disclosed.
It is worth noting that the register does not only list Austria-based companies. Among the 17 companies licensed in early 2024, a few of them were based in Germany and the Netherlands. This demonstrates that the Austrian license can be obtained by a non-Austrian company.
Crypto-authorization process in the Austria Virtual Currency Registry
To register as a virtual currency service provider, one must follow the crypto authorization process in Austria. VASP license is granted after successfully completing the process and getting the approval of the FMA.
The registration of Austria Company in Register of crypto currency companies
The application to register a company in the Austrian register of crypto currency companies is performed online, after due preparation of the legal paperwork and corporate requirements.
The crypto project has to acknowledge all the necessary elements to be prepared and fulfilled before carrying out an application for registration as a VASP in Austria. Once ready, the registration application has to be submitted by emailing the Financial Money Authority.
This first contact with the regulator is only the first milestone to reach in the process, as assessment and possible requests for additional documents, interviews and other information are likely in the course of the next 6 to 18 months of the licensing procedure.
Governmental Statements on Crypto in Austria
Austrian authorities were early to pay attention to cryptocurrency. In March 2018, National Bank of Austria’s governor, Ewald Nowotny, insisted on the importance of regulating and better informing the public about cryptocurrency and their inherent risks.
The issuance of a crypto regulation less than 2 years after this statement is a significant demonstration that Austria believes in crypto. Nowotny’s governmental statement on crypto in Austria underlines the awareness that cryptocurrency is here to stay and the country must do its best effort to integrate it smoothly.
Requirements to form a crypto licensed company in Austria
There are numerous legal requirements for companies engaging in crypto activities in Austria. A crypto company can only receive the FMA approval in the form of a VASP registration by first fulfilling these requirements and demonstrating their enforcement in the operations.
A company shall for example provide detailed information about its corporate structure:
- Name, address, registration number and contact details;
- Identification and judicial records of directors and beneficial owners;
- Depiction of the ownership and control structure of the operation, supported by an organization and holding chart;
- Detailed business model with a description of the services to be provided from the following list:
- Private cryptographic key backup services to keep, store, and transfer virtual currencies on behalf of a customer (electronic wallet providers)
- the exchange of virtual currencies for Fiat money and vice versa ;
- the exchange of one or more virtual currencies among themselves ;
- the transmission of virtual currencies ;
- the provision of financial services for the issuance and sale of virtual currencies.
The project is also expected to comply with safety and AML-CFT standards:
- Internal control system, strategies and procedures to comply with AML-CFT regulations;
- Appointment of an Anti Money Laundering Officer with the relevant background and experience to undertake the position;
- Fit & Proper test of all participants.
The application and all the supporting documents must be either in German or English language.
Finally, a fee of 3,000 EUR is charged for the processing of the VASP registration by the FMA.
The process of setting up a company for a cryptocurrency business in Austria
Setting up a company for a cryptocurrency business in Austria is not mandatory, provided that the project’s company is headquartered and operating from another European jurisdiction. There are cases of Dutch and German crypto companies operating under an Austrian VASP license.
Formation of an Austrian company, in the form of a GmbH (limited liability company) is a straightforward process that takes about 2 to 3 weeks to complete. An Austrian company is seen as prestigious in the world of business, especially connected to any form of financial services.
The process simply involves the provision of documents about the participants and notarization for acceptance by the Austrian authorities.
Taxation of cryptocurrency companies in Austria
Cryptocurrency companies that are incorporated in Austria are liable to pay taxes on their corporate income, independently from their sphere of business.
The standard rate of taxation for Austrian businesses is 23% of the corporate profits since 2024. There is a minimum taxable amount, that is 875 EUR per quarter.
Dividends paid out by an Austrian company are taxed at the height of 27.5% if they are paid out to individuals, 24% if they are directed to companies abroad (holdings, sister companies, etc).
Obligations of crypto companies in Austria
To maintain its crypto license in Austria, a virtual asset service provider must respect the obligations laid out by the law and underlined by the regulator. These obligations are pertaining to compliance with anti-money laundering measures and countering the financing of terrorism.
Every licensed entity by the Financial Markets Authority of Austria is subject to ongoing supervision. The FMA assesses if the crypto business is in line with the provisions of the FM-GwG and the European Regulation 2015/847 on transfers of funds. This ongoing supervision is not free for the crypto company. 1% of the annual gross fees from virtual asset services should be paid as a fee to the FMA (or a minimum of 500 EUR).
The Law also describes different types of obligations that must be observed at all times by the crypto company:
- Conducting due diligence to its clients;
- Retention and protection of client data;
- Reporting obligation to the authorities by the AML officer.
Sanctions for violating Austria's crypto-business obligations
The Law describes the possible sanctions for violating Austria crypto-business obligations.
Failing to protect clients’ funds and data, reporting incomplete or false information, appointing unqualified personnel as a facade, etc, are all offenses that are liable to a preventive fine of 150.000 EUR. Failing to prevent further similar wrongdoings can lead to fines of up to 5 million EUR or twice the benefit derived from the wrongdoing.
The provision of virtual asset services without proper registration to the FMA for an Austrian crypto license is liable to a fine of up to 200.000 EUR.
Individuals can be held as criminally liable if their power over the company and their responsibility and malevolence over the violation is proven.
Alternative Crypto Licenses to Austria
Here is a curated list of alternative crypto licenses and top jurisdiction, that works as alternatives to the crypto license in Austria.
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Fastest licensing process
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Lowest price in 2024
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Available ready-made companies
Crypto License in Estonia
from 1.420 €-
0% Corporate Income Tax
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Cheap and fast process
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No travel needed
Crypto License in Luxembourg
on request-
15% CIT
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Finance elite country
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Prestigious
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0% tax on individual crypto trading
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Well-rounded framework
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Crypto-friendly country
Crypto License in Liechtenstein
on request-
12,5% CIT
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Flexible framework
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Highly trusted
MiCA Regulation in Austria
The Markets in Crypto Assets Regulation (MiCAR or MiCA for short) is an European regulation that started to apply to every European Union jurisdiction in June 2024. The last leg of the regulation will be enforced in December 2024. Since then, member states of the EU are liable to enforce these regulations, applicable to crypto licensed company in Europe. The full implication of the passing of this regulation is expected that, over the course of 18 months and until December 2025, EU countries will progressively align on the requirements and conditions of the Estonian and French crypto licenses.
LegalBison is monitoring carefully the progressive enforcement of MiCA and is adjusting its guidance accordingly. Our experts are familiar with the regulation and its application, and are able to design an up-to-date solution for your project that takes MiCA into consideration.
FAQ about the crypto license in Austria
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.
No, there is no such thing as a trading license for cryptocurrency in Austria. Individuals and companies are allowed to buy, sell and trade crypto without any specific permit.
Crypto activities can be performed in Austria by European companies having registered as a virtual asset service provider to the national regulatory authorities, meaning the Financial Markets Authority (FMA). This registration is often referred to as the crypto license in Austria.
Cryptocurrency trading is subject to capital gains tax in case of a profit. Cryptocurrency companies are taxed in the same fashion as other companies registered in Austria.
Contact Us for a Consultation about the Crypto License in Austria
Interested in registering a crypto firm in Austria? Willing to receive more information about this legal framework and other alternatives?
Our experts will guide you into designing the best possible solution for your project. Tailored advice and quotation for your business. Reach out now.
Legal experts in designing solutions for crypto licensing worldwide.
Blockchain enthusiast and expert on cryptocurrency and FinTech related laws.