Blockchain adoption on the rise in Austria

29 Mar 2022

The popularity of blockchain is increasing in Austria, becoming an ever more attractive destination for blockchain-based product providers, as the government experiments with the technology.

Austria’s government is open to innovations involving blockchain and has provided support to several public and private sector projects.

Back in 2019, the Austrian Public Service Blockchain (APSB) was founded by a group of public administration institutions. These include the Austrian Economic Chamber, City of Vienna, Federal Computing Centre, and Vienna University of Economics and Business Administration, Cointelegraph reports.

Furthermore, developments are also progressing in regard to private sector blockchain infrastructure, and at the start of 2021, the Blockchain Initiative Austria (BIA) association was established. Indeed, e-business standards developer, Austriapro is working with the Austrian Blockchain Centre to help set up a secure infrastructure for private-sector usage in the country.

Moreover, thanks to the Austrian Economic Chamber, businesses have received blockchain tech info, and a working group specifically focused on blockchain has been set up by the Chamber. Information on blockchain is exchanged between members, and best practices and current actions are discussed.

As well as the increasing government interest in the country’s blockchain market, fintech firms and smaller financial institutions are also getting on board.

Areas of application consist of crypto mining, trading and payment services, as well as financing through initial coin offerings, initial token offerings and security token offerings, the Cointelegraph report adds.

In addition, new tax regulations for cryptocurrency investors are now in force. The previous tax exemption was scrapped at the beginning of the month, and crypto income now incurs tax of 27.5%, irrespective of how long the crypto assets have been held. This new tax applies to crypto acquired since 28th February 2021.

Via these new regulations, Austria aims to create more legal transparency for investors, in order to boost confidence in the new tech.