Due to increasing cases of fraud – Austria calls for stricter crypto regulation

The financial supervisory authority of the Alpine republic sees the current hype about crypto currencies as a great danger for investors.

The Austrian Financial Market Authority (FMA) has established that investment fraud is now largely carried out with crypto currencies, which is why the authority is calling for “stricter regulation” of this.

As yesterday Friday from a report by Bloomberg seen , there are more than 60% of cases of investment fraud that appears to the FMA of „whistleblowers“ in conjunction with crypto assets

In the associated press release , the authority confirms that social networks such as Facebook, WhatsApp, Telegram and Immediate Edge are mainly used as breeding grounds to lure investors into fraudulent projects.

Klaus Grubelnik, a spokesman for the FMA, therefore emphasizes that a decisive reaction must follow, particularly due to the current popularity of crypto currencies:

“We see a clear need for stricter regulation. Fake offers for stocks and gold have always existed, but in the meantime the fraudsters are increasingly shifting to digital currencies because of the current hype. “
The increase in fraudulent crypto projects noticed by the Austrian financial supervisory authority in 2020 has been accompanied by a general increase in crypto fraud since the beginning of the corona crisis.

The fact that the Alpine republic would like a stricter treatment of crypto currencies is not new, however. So Austrian Finance Minister Hartwig Löger had already in 2018 a common European crypto regulation required in order to combat their possible role in money laundering.

At the time of the demands at the time, a crypto pyramid scheme was in the headlines that cheated its victims out of more than 12,000 Bitcoin ( BTC ), which makes the political counter-attack all the more understandable.

Although there are more and more illegitimate crypto projects in Austria, many reputable companies are trying to increase the adoption of the asset class

The Vienna Stock Exchange has already listed several crypto financial products in its listing , making the „conservative“ country far more progressive in terms of crypto currencies than the USA, which has not yet allowed Bitcoin ETFs.

Crypto payments are also slowly establishing themselves in Austria, because the large mobile network operator A1 has been enabling payments in the form of crypto currencies via its in-house payment network since July 2020 .

The University of Vienna has, meanwhile, in November 2020, the IOTA Foundation teamed up to use the block chain technology to explore further.