Austria -- Enforcement Actions Regulatory Overview

**Titles III (ARTs) and IV (EMTs) of MiCA**, covering stablecoins, will apply from **30 June 2024**.

The remaining provisions of MiCA for other crypto-assets and crypto-asset service providers will apply from 30 December 2024.

**E-money Tokens (EMTs) (Title IV of MiCA):**

Under MiCA as applied in Austria, stablecoins are split into (i) e‑money tokens (EMTs), defined as crypto‑assets that purport to maintain a stable value by reference to one official currency, and (ii) asset‑referenced tokens (ARTs), defined as crypto‑assets that purport to maintain a stable value by reference to one or several assets or values other than a single official currency (for example baskets of fiat currencies that are not legal tender, commodities like gold, or other crypto‑assets). The broad ‘any other value or right or combination thereof’ formulation is no longer the operative description for EMTs, which are now limited to one official currency, while ARTs cover the multi‑asset or non‑currency references.

EMTs are considered e-money under the E-Money Directive (2009/110/EC) and its Austrian implementation, the **E-Geldgesetz 2010**. MiCA effectively extends the existing e-money framework to crypto-assets.

**Regulatory Reference:** MiCA, Article 3(1)(5) and Title IV.

**Asset-Referenced Tokens (ARTs) (Title III of MiCA):**

Defined as a type of crypto-asset that is not an EMT and purports to maintain a stable value by referencing **any other value or right or combination thereof**, including one or several official currencies that are not legal tender, one or several commodities, or one or several crypto-assets, or a combination of such assets (e.g., a stablecoin backed by a basket of fiat currencies, gold, or other crypto-assets).

ARTs are a new category specifically created by MiCA.

**Regulatory Reference:** MiCA, Article 3(1)(4) and Title III.

MiCA aims to create a *specific* framework for ARTs and EMTs, meaning that if a token falls under these MiCA definitions, it will primarily be regulated as such, rather than as a "security" under the traditional WAG 2018/KMG, or merely as a "payment token" (which is not a formal legal classification but a functional description).

However, if a crypto-asset (even if attempting to be stable) does *not* meet MiCA's definitions for ARTs or EMTs and exhibits characteristics of a financial instrument, it could still be regulated under existing Austrian securities law (e.g., WAG 2018) or capital market law (KMG). MiCA has a clear scope exclusion for financial instruments already regulated under existing EU legislation like MiFID II.

Issuers of EMTs must always issue them **at par value** upon receipt of funds and are required to redeem them at par value upon request.

Funds received in exchange for EMTs must be protected and held by the issuer in a credit institution or invested in secure, low-risk assets (e.g., deposits with central banks or credit institutions, highly liquid government bonds).

Issuers must ensure that the reserve assets are **at all times equal to or greater than the amount of EMTs in circulation** (1:1 backing).

Issuers of asset‑referenced tokens must maintain and manage a segregated reserve of assets whose value at least equals the value of tokens in circulation, subject to risk-based prudential rules on composition, liquidity and own funds, rather than a simple static ‘at all times 1:1 parity’ formula.

**Regulatory Reference:** MiCA, Article 52-56.

Issuers must establish and maintain a **reserve of assets** that is fully segregated, separate from the issuer's own assets, and held in custody by a third party.

The reserve assets must be managed to ensure that the value of the reserve is **at all times equal to or greater than the value of the ARTs in circulation**.

Rules on the composition of the reserve assets:

Must be adequately diversified and held in low-risk assets.

Detailed rules on liquidity management (at least 30% in highly liquid assets, daily redemption for stable ARTs).

**Regulatory Reference:** MiCA, Article 32-38.

Issuers of EMTs must be **authorized as a credit institution** (under the EU Capital Requirements Directive/Regulation) or as an **e-money institution** (under the EU E-Money Directive/Austrian E-Geldgesetz 2010).

They also need to publish a crypto-asset white paper and obtain approval from the FMA.

**Regulatory Reference:** MiCA, Article 48 & 49.

Issuers of ARTs must be **authorized by the FMA** (or another competent national authority in the EU) before offering ARTs to the public or seeking admission to trading on a crypto-asset exchange.

The authorization process is extensive, requiring a detailed application including a business plan, governance arrangements, risk management, internal control mechanisms, capital requirements, and a crypto-asset white paper.

Under MiCA in Austria, issuers of ARTs must maintain own funds equal to the higher of EUR 350,000, 2% of the average amount of reserve assets, or one quarter (25%) of the fixed overheads of the preceding year; for significant ARTs, the percentage rises to 3%.

**Regulatory Reference:** MiCA, Article 16-21.

Holders of EMTs have a **direct claim against the issuer** and must be able to redeem their EMTs at any time at par value, for the fiat currency they represent, free of charge (unless explicitly disclosed fees apply, which must be proportionate).

Regulatory Reference: MiCA, Article 58.

Holders of ARTs have a **direct claim against the issuer** and a proportionate claim on the reserve assets.

Issuers must establish and disclose clear redemption policies, including conditions, fees, and procedures for redeeming ARTs for the assets in the reserve.

**Regulatory Reference:** MiCA, Article 39.

For a crypto-asset to qualify as an ART or EMT, it *must* maintain a stable value by referencing actual assets held in reserve (for ARTs) or fiat currency (for EMTs) with specific backing and liquidity requirements.

An algorithmic stablecoin that relies solely on a smart contract and arbitrage mechanisms without physical backing to maintain its peg would fail to meet the reserve requirements of MiCA Titles III and IV.

If an algorithmic token *does* manage to maintain a stable value through mechanisms that include sufficient, liquid, and segregated reserve assets as required by MiCA, then it *could* theoretically fall under ARTs/EMTs, but this design would be fundamentally different from typical unbacked algorithmic stablecoins.

**Regulatory Reference:** The implicit prohibition stems from the strict definitions and reserve requirements in MiCA, especially Articles 32-38 (ARTs) and 52-56 (EMTs).

MiCA acknowledges the potential future for a digital euro (a Central Bank Digital Currency or CBDC) issued by the European Central Bank (ECB).

Currently, there is no specific Austrian legislation regulating the interaction between private stablecoins and a CBDC, as the digital euro is still in development. However, MiCA lays the groundwork for ensuring that private stablecoins do not undermine monetary sovereignty or financial stability in a future CBDC environment.

MiCA Articles 21(5), 51(3), and 60(3) address crypto-asset issuance and service provider requirements, but do not directly govern macro-prudential safeguards related to monetary policy. CBDC development falls outside MiCA's scope and is governed by separate central bank frameworks; the ECB and OeNB are primary sources for CBDC policy, not MiCA implementation.

**Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114):**

**Austrian Financial Market Authority (FMA) – Crypto Assets Information:**

The FMA is the primary competent authority in Austria for supervising MiCA.

General information on crypto-assets: https://www.fma.gv.at/en/cross-sector/crypto-assets-and-tokenisation/

**Austrian E-Money Act (E-Geldgesetz 2010 – E-GG 2010):**

Relevant for EMTs and pre-MiCA e-money classifications.

Generally available through legal information systems like Rechtsinformationssystem des Bundes (RIS) – search for "E-Geldgesetz 2010".

**Austrian Securities Supervision Act (Wertpapieraufsichtsgesetz 2018 – WAG 2018):**

Relevant for assessing if a token falls outside MiCA's scope and qualifies as a security.

Generally available through FMA or official legal publications – search for 'Wertpapieraufsichtsgesetz 2018' or 'WAG 2018'.

**Oesterreichische Nationalbank (OeNB) – Digital Euro Information:**

Information on Austria's central bank stance on the digital euro.