EuropeNorway

Crypto Regulations in Norway

Since 2018, Norway’s Central Bank has not recognized cryptocurrency as a legal tender, but regulations for money service businesses dealing in crypto and crypto wallet providers are in place. Norway’s Finance Department issued the Regulation on Money Laundering, specifically targeting cryptocurrency businesses, effective October 15, 2018. The regulation requires platforms facilitating crypto trades, exchanging crypto and fiat currencies, and storing cryptocurrency, to register with Norway’s Financial Supervisory Authority (FSA) and implement anti-money laundering procedures under the Money Laundering Act.

Source: Freeman Law

There is currently no legislation or regulatory framework in Norway that specifically addresses the regulation of cryptocurrencies. However, some laws apply to activities and services based on virtual currencies, mainly the Law on Measures to Combat Money Laundering and Financing of Terrorism (hereinafter: – “AML law”). In addition to AML law, the Securities Trading Act and Financial Undertakings Act regulate payments, investments, and utility tokens.

Source: Minimama

Digital currencies are unregulated in Norway, and this makes them even riskier, the regulator added. It called out digital currency firms that claim to be regulated by Finanstilsynet. This is very misleading, it noted. While all financial firms must adhere to anti-money laundering requirements, this is as far as Finanstilsynet oversees digital asset firms.

Source: Coin Geek

Norwegian tax authorities consider virtual currencies to be assets subject to the general tax rules for wealth and sales taxes, but virtual currency transactions are not subject to value-added tax (VAT).

Source: The Law Reviews

The Norwegian tax authorities have established that virtual currency is considered an asset for tax purposes. As a result, income from virtual currency complies with the general rules of asset taxation, and profit and income are calculated as income from the capital for both legal entities and individuals (currently taxed at a rate of 22%). Cryptocurrencies are not subject to exemptions or special tax rules that apply to regular (fiat) currency, stocks, bonds, financial instruments or other types of assets with special exemption rules.

Source: Manimama

There is currently no specific regulation on virtual currency exchanges. Thus, operating these exchanges is not subject to financial services regulation and does not require a license. The aforementioned applies both to decentralized exchanges with peer-to-peer solutions and to centralized exchanges. Unless they also are engaged in exchange services between virtual currencies and fiat currencies, or wallet CWPs, they are not required to register with the FSA to comply with any anti-money laundering obligations.

Source: The Law Reviews

Norway’s Norges Bank, its central bank, hit a major breakthrough in its digital currency efforts as it released the open source code for the country’s central bank digital currency (CBDC) sandbox based on Ethereum technology.

Source: India Today

A small Norwegian cryptocurrency exchange has refunded its users after falling victim to a SIM swap and phishing hack in May 2021, reportedly losing $500,000 (4.1 million NOK) worth of digital assets.

Source: Inside Bitcoin

The millionaire husband of a Norwegian woman thought to have been abducted and held for cryptocurrency ransom in 2018 was arrested on Tuesday on suspicion of killing her, police said, though his lawyer said he denied any involvement.

Source: Reuters

Makaveli Lindén, the primary suspect in the gruesome murder of 24-year-old Norwegian bitcoin investor Heikki Bjørklund Paltto, is in police custody following a successful international manhunt.

Source: Yahoo

The primary objective is to use the sandbox as a test lab for tech firms and fintech to trial products, technologies, and services. It will also support the regulator’s efforts to regulate an industry rapidly adopting disruptive technologies, such as digital and artificial intelligence (AI) within the IT and fintech industry. Regulators and fintech firms are to test ideas without having to first go through a costly and lengthy authorization process.

Source: ComputerWeekly