Self-custodial wallet / non-custodial software in Austria
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is conditionally permitted in Austria without local incorporation, subject to AML obligations and none licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
Key Restrictions
- The publisher never holds, controls, or has access to user funds or private keys — this is a non-custodial software product, not a VASP service under Austrian law.
- No VASP registration or AML obligations apply to the software publisher, as the FM-GwG's definition of VASP services requires safekeeping of virtual currencies for third parties, which is not present here.
- Austria's current framework (FM-GwG) and future MiCA framework regulate custody and administration of crypto-assets for third parties; mere software distribution does not trigger these regimes.
Key Risks
- Regulatory ambiguity risk: If the software includes any integrated features that could be construed as a crypto-asset service (e.g., built-in swapping, staking, or fiat on/off ramps where the publisher controls counterparty risk), the classification could shift and trigger VASP/CASP obligations.
- Enforcement precedent risk: Austrian regulator (FMA) has taken enforcement action against unregistered VASPs; if the wallet's functionality extends beyond pure self-custody software, it may be scrutinized under the FM-GwG or MiCA.
- Tax disclosure risk for Austrian users: Crypto assets held via self-custodial wallets are subject to Austrian capital gains tax (EStG); the software publisher may face consumer-protection or tax-reporting expectations even if not legally required.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Finanzmarktaufsicht (FMA) – Austrian Financial Market Authority:
Crypto Involvement: The FMA is responsible for the registration of Virtual Asset Service Providers (VASPs) under AML/CFT laws and will be the competent authority for licensing and supervising crypto-asset service providers (CASPs) under MiCA. It also provides guidance on the classification of crypto assets.
Geldwäsche- und Terrorismusfinanzierungsgesetz (GWG) – Anti-Money Laundering and Counter-Terrorist Financing Act (as amended):
Services covered (as per the FMA): Exchange between virtual currencies and fiat currencies, exchange between one or more virtual currencies, transfer of virtual currencies, safekeeping and administration of virtual currencies or instruments enabling control over virtual currencies, and financial services in connection with the issuance/sale of virtual currencies.
VASP Registration: There is no dedicated "custody license" per se. Instead, entities providing custody of virtual assets are classified as Virtual Asset Service Providers (VASPs) and are required to register with the Austrian Financial Market Authority (FMA).
Scope: The FM-GwG defines "providers of services related to virtual currencies" to include "the safekeeping of virtual currencies for third parties" (i.e., custody).
Current: The FM-GwG, being an AML law, does not explicitly mandate prudential segregation of client crypto assets from the custodian's own assets.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a publisher of a pure self-custodial wallet (no custody of keys or funds) is not classified as a VASP under Austria's FM-GwG and does not trigger AML/licensing obligations, but any integrated service features could shift the classification and trigger registration requirements.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?