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October 5, 2022
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Austrian regulators want stricter cryptocurrency regulations –

Austrian regulators want to introduce much stricter cryptocurrency regulations. This is the effect of the growing scale of fraud in this market.

Austrian regulators want to strictly regulate cryptocurrencies

Austrian regulators are calling on politicians to introduce stricter cryptocurrency laws. According to Friday Bloomberg article, the Austrian Financial Market Authority revealed that more than 60 percent. all reported frauds in the country involve digital currency products.

The office says scammers use social media platforms such as Telegram and TikTok to advertise their offers to potential victims.

Klaus Grubelnik, the office’s spokesman, commented on the need to introduce stricter cryptocurrency regulations, pointing out that the threat associated with these fraudulent investment activities must be quickly reduced.

We see a great need for stricter regulations. Fake stocks and gold offers have always existed, but these sorts of scams are now spilling over to digital assets due to hype [medialnego] – He said.

Side effects of the bull market

The sharp rise in reports of cryptocurrency scams in 2020 could be linked to the overall rise in cryptocurrency scams. This is certainly related to the Bitcoin boom, the coronavirus pandemic and the economic crisis.

In 2018, Austria’s Finance Minister, Hartwig Löger, called for pan-European cryptocurrency legislation to combat money laundering programs. His appeal came in the context of the Optioment Bitcoin pyramid, which took over 12,000 Bitcoins from unaware investors.

It is worth adding, however, that platforms, such as the Vienna stock exchange, simultaneously offer various products from the cryptocurrency market, which contrasts with, for example, the situation in the United States, where regulatory authorities have not yet authorized trading in cryptocurrency ETFs.

In addition to trading on official exchanges, cryptocurrency payments are also gaining popularity in Austria thanks to A1 Payment, one of the largest mobile network operators in the country. The company enables the option of paying in cryptocurrencies from July 2020.

When it comes to implementing blockchain technology, the Iota Foundation established cooperation with the Vienna University of Technology in November 2020. The aim is to conduct research in the field of distributed ledger technology.

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