Austrian regulator stops crypto mining firm amid investigation

The Financial Market Authority has barred cryptocurrency INVIA from offering mining services neither licensed nor supervised by it

What has happened?

The Austrian Financial Market Authority (FMA) has barred a cryptocurrency mining firm from operating on the ground that it is not complying with banking regulations.

What does this mean?

In a press release, the regulator announced that it had "prohibited the business model of INVIA GmbH... offering financial services in conjunction with the mining of cryptocurrencies" on the suspicion of "the unauthorised management of an Alternative Investment Fund pursuant to… [the] Alternative Investment Fund Managers Act".

The FNMA added that the procedure is still pending.

According to the release, INVIA is not neither licensed nor supervised by the FMA.

The regulator said it had decided to make the information public as it had received many enquiries from consumers.

Next steps

If you want to take advantage of blockchain's huge potential and disruptive impact, while avoiding falling foul of ever-developing regulatory and legal requirements, visit our Hogan Lovells Engage Blockchain Toolkit.

Contacts
John Salmon
Partner
London

 

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