AUSTRIA Law and Practice Contributed by: Oliver Völkel and Philipp Ley, CERHA HEMPEL
under the Austrian Banking Act and therefore require authorisation. Under the Austrian Banking Act, syndi - cated loans are also subject to special balance sheet rules. These rules determine how these exposures are reported and risk-weighted on the books of the par - ticipating institutions. 5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails Under Austrian law, payment processors may use existing payment rails or implement new ones. How - ever, both approaches are subject to regulation under the Austrian Payment Services Act (ZaDiG 2018), which implements the EU’s PSD2. Most processors operate on established systems like the SEPA or card networks. When doing so, they must be licensed as: • payment institutions; or • electronic money institutions, depending on the services provided. Austrian law also permits the development of new or proprietary payment systems, such as digital wallets or API-based transfer platforms. However, the crea - tion of these systems still requires compliance with PSD2. If the processor holds customer funds or exe - cutes payment transactions on behalf of users, it must be licensed accordingly and ensure full compliance with rules on data protection, consumer rights and technical security. 5.2 Regulation of Cross-Border Payments and Remittances Cross-border payments and remittances in Austria are regulated under the Austrian Payment Services Act, which aligns with the PSD2. Under the Financial Markets Anti-Money Laundering Act, payment service providers must implement customer due diligence (KYC), monitor transactions and report suspicious activities to the Austrian Financial Intelligence Unit. The Transfer of Funds Regulation extends these obli - gations to crypto-asset transfers. Since 30 December
2024, crypto-asset transfers must include information on both the originator and the beneficiary, aligning with the rules already in place for fiat transactions. However, this requirement does not apply to peer-to- peer transfers or those involving unhosted wallets. 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms Regulated markets are traditional exchanges where financial instruments such as shares and bonds are traded. In Austria, they are governed by MiFID II and the Austrian Securities Supervisory Act. They are supervised by the FMA. Operators must be licensed and comply with strict rules on transparency, disclo - sure and investor protection. These platforms ensure pre and post-trade transparency, apply formal listing standards and maintain robust market oversight. Multilateral Trading Facilities (MTFs) MTFs are electronic platforms that match multiple third-party buy and sell orders in financial instruments. They operate similarly to exchanges but have more flexibility. MTFs are regulated under MiFID II and the Securities Supervisory Act and must be operated by licensed investment firms or market operators. They are subject to rules on fair and orderly trading, best execution and transparency, although generally with lighter listing requirements than regulated markets. Organised Trading Facilities (OTFs) OTFs are a similar platform to MTFs and are used for trading non-equity instruments like bonds and deriva - tives. Unlike MTFs, OTF operators may exercise lim - ited discretion in order execution but cannot trade on their own account. OTFs are also regulated under MiFID II and the Securities Supervisory Act and may only be operated by licensed investment firms. Crypto-Asset Trading Platforms Crypto-asset trading platforms currently fall outside the scope of MiFID II unless the assets qualify as financial instruments. In Austria, they were regulated primarily under the Anti-Money Laundering Act and must register with the FMA. However, from now on, MiCA’s operation of a crypto-asset trading platform
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