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Typical fintech activities that may be regulated or licensed include: (1) internet platforms or app solutions that offer trading venues for tokens or placement services for tokens, in particular security tokens; (2) initial coin offering (ICOs), initial token offerings (ITOs) or initial exchange offerings; (3) crypto miners in certain circumstances where money is collected from the market; or (4) setting up an investment management company or automated digital advisory company.¹

Depending on the assets that are traded or offered on digital marketplaces, legal requirements will vary: where securities are traded, a marketplace may qualify as a stock exchange, multilateral trading facility (MTF) or organised trading facility (OTF) depending on the services it offers. Operators of stock exchanges, MTFs, and OTFs must be licensed. A banking licence is also required to underwrite third-party securities issues and related services (third-party securities underwriting business). A regulated trade licence may be required in cases where only investments are offered or traded.¹

In terms of ICOs and cryptocurrencies, a platform is subject to the above requirements if the coins or tokens qualify as investments or securities. In most cases, trading platforms for genuine cryptocurrencies, such as Bitcoin and Ether, which don't have an issuer collecting money from the public, do not require a financial services license, but may require a free trading license.¹

Crowdfunding platforms in Austria typically deal with licensing requirements by taking difference strategies. Examples include refraining from offering security tokens, to limiting services such that no licensed service is being provided. In some cases, it's been reduced to just marketing platforms that hold off trading or placement of securities and tokens.¹

Smart contracts in Austria

Fintech in Austria

Fintech in other countries

Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/austria