You can see the rules and regulations in other jurisdictions.
The Alternative Financing Act (AFA) was originally designed to aid small and medium-sized enterprises (SMEs) through crowdfunding, by easing the process with a set of simple regulations. Donations-based or rewards-based crowdfunding were generally not affected by significant limitations; however, traditional crowdfunding strategies which raised funds from the public for investment purposes were usually subject to prospectus requirements dictated by the CMA.1
Until the end of 2021, the rules of the AFA were an alternative to crowdfunding under Regulation (EU) 2020/1503 (the EU Crowdfunding Regulation).1
The AFA is aligned with the CMA. It applies to securities and investments issuances under an exemption from prospectus requirements under the CMA. SMEs are not the only ones affected by the simplified framework. Simplified rules are available to all kinds of issuers (including licensed entities).1
Under the AFA, securities may be issued without needing to prepare a prospectus if their total value is less than €2 million. These transactions are still subject to regulation, requiring the creation of a key information document which will reveal important facts about the issuer and project to prospective investors. This should help lower costs for supporters of such projects, as they no longer need to produce a (simplified) prospectus and obtain approval from the FMA.1
The following restrictions must be observed: (1) the aggregate outstanding amount of all investments raised via the AFA may not exceed €5 million over a period of seven years; (2) the aggregate amount of all securities and investments issued pursuant to the AFA may not exceed €2 million over a 12-month period; and (3) the aggregate outstanding amount of all securities and investments in the European Union may not exceed €5 million over a period of 12 months (including crowdfunding offers under the EU Crowdfunding Regulation). If by new issuances these thresholds would be exceeded, any such new issuance will require a prospectus under the CMA. There are limits to the amounts that retail investors may invest in alternative financing instruments (generally €5,000 in a 12-month period), which will need to be taken into account when determining the target market for such an instrument.1
Issuers of securities are not bound to rely on the simplified rules. They may continue to prepare a full EU securities prospectus (for example, when it is beneficial for placing the securities or the like or passporting of the prospectus is intended); in such cases, the rules of the AFA will not apply.1
Cryptocurrencies without an issuer, such as Bitcoin and Ether, are not considered currencies, financial instruments, or tradeable securities in Austria.1
The trade of cryptocurrencies is not a regulated activity but could require a licence depending on the business model. An underlying asset of a derivative instrument made up of them could meet the criteria for a financial instrument under MiFID II. The same should also apply if the token's value references Bitcoin or Ether. On the other hand, the FMA may regard stablecoins linked to fiat currencies as e-money instead.1
Custodian wallet providers and platforms for exchanging cryptocurrencies are now required to register with the FMA and prove compliance with AML regulations.1
Generally, token fundraising follows the same rules as any other type of fundraising in Austria, regardless of whether the issuer or offeror is based in Austria or abroad.1
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