AUSTRIA Law and Practice Contributed by: Oliver Völkel and Philipp Ley, CERHA HEMPEL
1. Fintech Market 1.1 Evolution of the Fintech Market Fintech Market in Austria
models with stricter governance, reporting and risk management standards. Artificial Intelligence (AI) AI is increasingly being explored in the fintech sec - tor, particularly for automating compliance tasks, like fraud detection, and enhancing customer interac - tions. Adoption remains cautious, as many fintechs in Austria are currently more focused on decentralised finance (DeFi) and crypto-asset services, where regu - latory attention is high. The complexity and ongoing implementation of MiCA have led firms to prioritise legal and operational compliance over the integration of AI-driven technologies. As a result, broader adop - tion of AI in fintech is expected to accelerate once the regulatory framework under MiCA is firmly estab - lished. The fintech landscape in Austria is shaped by a mix of established players and innovative start-ups. One prominent market participant has evolved into a full- service platform, offering both crypto-asset services and traditional financial products, effectively bridging the gap between conventional finance and blockchain- based financial services. This hybrid approach reflects a growing trend among legacy players to diversify their offerings in response to customer demand and increasing regulatory clarity. At the same time, a number of start-ups are focus - ing on the tokenisation of real-world assets such as gold, diamonds or other tangible goods. These tokens are often bundled into structured products, aiming to provide new investment opportunities through block - chain technology. This business model raises complex regulatory questions, particularly around the distinc - tion between crypto-assets under MiCA and financial instruments governed by MiFID II. The most common fintech business models (“verti - cals”) include: 2. Fintech Business Models and Regulation in General 2.1 Predominant Business Models
Over the past year, the Austrian Financial Market Authority (FMA) issued the first authorisations under the Markets in Crypto-Assets Regulation (MiCA). Austria has positioned itself as one of the top juris - dictions in the EU for fintech companies, start-ups and crypto-asset service providers (CASPs) including token-based protocols and projects. In parallel, stablecoins are gaining increasing impor - tance: several issuers of e-money tokens have noti - fied their white papers to the European Securities and Markets Authority (ESMA) and have subsequently been entered in the ESMA register. Both private and public stablecoin initiatives aim to establish a coun - terweight to the US-dominated system. The Austrian major bank Raiffeisen Bank International (RBI) is part of a consortium of ten banks developing a euro- denominated, MiCA-compliant stablecoin named Qivalis. At the same time, the EU continues to work on the digital euro. EU regulations have driven a significant shift in the fin - tech market, particularly through MiCA and the Digital Operational Resilience Act (DORA). These regulations have increased legal certainty, enabling companies to assess the legal situation regarding crypto-assets, with an increased focus on traditional financial institu - tions. However, MiCA and DORA also bring significant regulatory hurdles which need to be analysed closely. This has not held back an increasing number of inter - national companies who are choosing to obtain MiCA authorisation in Austria. As a result, Austria is home to one of the largest CASPs in the EU. Implementation of MiCA The most significant effect comes from the practical implementation of MiCA (as well as DORA) as com - panies move from assessing the legal situation and obtaining authorisation for operational readiness. In Austria (and Europe in general) regulatory scrutiny around anti-money laundering (AML) and cybersecu - rity is likely to intensify. Smaller-scaled business and fintech companies will need to align their business
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