The Norwegian Central Bank said today that Norwegian authorities should act to establish a national regulatory framework for crypto assets and should not wait for European legislation to enter into force.
"We Must Create A Cryptocurrency Regulatory Framework Without Waiting"
The Norwegian Central Bank stated in its statement:
“An international regulatory framework is crucial. However, Norwegian authorities should consider whether they can move forward more quickly rather than waiting for international regulatory solutions.”
Norges Bank said this assessment will include, for example, assessing how risks associated with decentralized finance should be managed until a common European regulatory framework is established.
The European Union gave final approval to the world's first comprehensive set of rules to regulate Bitcoin and cryptocurrencies earlier this month, requiring firms that issue and trade crypto to be licensed by a national regulator starting mid-2024.
The 27-state union has also approved new rules for monitoring crypto-asset transfers such as Bitcoin and electronic money tokens to combat the use of crypto-asset transfers for tax evasion and money laundering.
Norway is not part of the 27-state bloc of the European Union, but these rules are likely to apply to Norway, which is a member of the European Free Trade Association (EFTA).
Global regulators also plan to propose a set of international rules for cryptoassets, including how existing rules can be applied to the industry.
*Not investment advice.