Norwegian Government Issues Warning on Cryptocurrencies, Calls For Regulation

June 24, 2021, 2:00 PM AEST (updated June 25, 2021)

An official statement by Finanstilsynet – the Norwegian entity in charge of financial regulation – has warned consumers to be wary of cryptocurrency investments.

Despite acknowledging the fact that many institutional investors have shown a marked interest in cryptocurrency, Finanstilsynet stated that unlike securities, bonds and other investments, cryptocurrencies are not well regulated within Europe.

Although Norway is not a part of the EU, cooperation between the EU and Norway is very close – and the statement pointed to the EU’s proposed legislation for cryptocurrency that should start providing a general framework for crypto regulation within the EU.

Until such regulations are in place, anyone considering trading in cryptocurrency should think carefully and understand the significant risk that such investments entail. Consumers who want to try this with open eyes should not invest more than they can afford to lose.

Finanstilsynet statement

It’s worth noting that the proposed legislation will not be adopted wholesale, as each EU country controls its own legislative system.

“Certifications” Can Be Misleading

The post also states that many crypto-related businesses in Norway feature a “seal of approval” from Finanstilsynet. However, Finanstilsynet clarified that these businesses are not exactly approved by it.

All businesses functioning in Norway, crypto or not, are required to submit information to Finanstilsynet in order to comply with anti-money laundering (AML) regulations. However, this does not mean that the businesses in question are actually endorsed by Finanstilsynet – only that they comply with rules and regulations already set in place.

The statement also notes there are a number of disreputable sites that are nothing but scams – and that although the Norwegian government is doing its best to get these websites shut down, caution is highly advised.

Overall, the view of Norwegian regulatory bodies on cryptocurrencies is not negative – instead, it stresses the need for regulation and consumer protection similar to those drawn up for other forms of investment.

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