According to Norway’s Financial Supervisory Authority, it solely monitors cryptocurrency enterprises for money laundering.
A Norwegian financial regulator warned investors that the cryptocurrency business is mostly uncontrolled in the country, as Bitcoin (BTC) fell to six-month lows around $30,000 on Tuesday.
The Norwegian Financial Supervisory Authority, or Finanstilsynet, issued a statement on crypto investor consumer protection on June 22, underlining that the authority presently does not regulate local crypto enterprises for anything other than money laundering:
“These platforms must notify Finanstilsynet in accordance with the money laundering regulations, but apart from money laundering supervision, Finanstilsynet does not supervise these actors.”
Finanstilsynet also highlighted some of the significant hazards involved with crypto trading, such as severe price volatility and scam vulnerabilities. The authority stated that “in many circumstances, the development of crypto pricing is not transparent.”
The agency went on to mention that “if cryptocurrency is to become a suitable form of investment for consumers,” a legal framework and investor protections are critical. According to Finanstilsynet, the European Commission proposed crypto market legislation in September, with the goal of enacting rules on investor protection, market abuse, and issuer authorization within five years.
“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 should not invest more than they can afford to lose,” Finanstilsynet concluded.
Norway is known as the world’s most cashless country with only 4% of the country’s payments conducted with banknotes and coins. In response to a massive decline in cash usage, the Norwegian central bank initiated research of a central bank digital currency in April 2021.