The Austria Financial Market Authority (FMA) has released a new short video in its “1 Minute – 1 Term” series explaining what stablecoins are, the risks they can pose, and what to consider before purchasing them. The FMA outlines that stablecoins are crypto-assets whose value is linked to reference assets such as traditional currencies or commodities like gold or oil, with stability depending on issuers holding sufficient reserves at all times. It notes that if confidence comes under pressure, including where many investors seek redemption simultaneously, stablecoins can quickly lose their stability. The release also reiterates the FMA’s role as Austria’s national authority for authorising and supervising stablecoin issuers and crypto-asset service providers under the EU Markets in Crypto-Assets Regulation (MiCAR), including pre-authorisation assessments and ongoing market and conduct supervision.
Austria Financial Market Authority 2026-04-23
Austria Financial Market Authority publishes stablecoin explainer video on reserve backing and redemption risks
The Austria Financial Market Authority has released a short educational video explaining the nature of stablecoins, associated risks, and key considerations for purchasers. The FMA highlights that stablecoin stability depends on sufficient reserves and investor confidence, and reiterates its role as Austria’s national authority for authorising and supervising stablecoin issuers and crypto-asset service providers under the EU Markets in Crypto-Assets Regulation.