A couple of weeks ago we published an article on how finance ministers in both Germany and France are pushing for a global cryptocurrency framework at the upcoming G20 meeting in Buenos Aires. Now on Feb. 23 the Austrian Finance Minister is looking to offer his own regulatory framework for the European Union as a whole which would put cryptocurrencies in the same boat as gold and derivatives trading.
Austria’s Finance Minister Hartwig Löger is considering basing cryptocurrency regulations on the trading rules already in place for gold and derivatives as a way to prevent crypto from being used in money laundering, Bloomberg reported Friday, Feb. 23.
During the meeting with Centeno, Löger discussed an action plan for the EU Commision in Brussels to form a working group in March to accept EU proposals about how to deal with fraud in cryptocurrencies.
Löger has also brought up the idea of a Fintech Regulatory Council to be organized by March, where crypto experts will examine how crypto regulation will work with EU institutions.
As part of Löger’s plan, crypto investors would report trades of more than $12,300 to the financial intelligence unit, and crypto trading platforms would be supervised by the Austrian Financial Market Authority (FMA).
Additionally, Initial Coin Offerings (ICO) would be based on “digital prospectuses” that would need to be approved by the FMA, and regulations against market manipulation and insider trading would be applied to ICOs, just as they already are for share and bond offerings. – Coin Telegraph
As noted above, thus regulatory proposal would potentially remove the transparency mechanism for cryptocurrency trading by limiting the amount of money traders can earn before they must be reported to an EU financial body.