Norway should move faster on crypto rules, central bank says

Norwegian authorities should move to establish a national regulatory framework for cryptoassets and not wait for European legislation to come into effect, Norway’s central bank said on Thursday.

“An international regulatory framework is crucial. Nevertheless, the Norwegian authorities should assess whether to proceed more quickly rather than wait for international regulatory solutions,” the central bank said in a report.

This would include for example assessing how risk associated with decentralised finance should be managed until a common European regulatory framework is in place, Norges Bank said.

The European Union gave the final nod to the world’s first comprehensive set of rules to regulate cryptoassets earlier this month, requiring firms that issue and trade cryptoassets to be licensed by a national regulator starting mid-2024.

The 27-state bloc has also backed new rules for tracing transfers of cryptoassets like bitcoins and electronic money tokens, to combat tax evasion and the use of cryptoasset transfers for money laundering.

Norway is not part of the 27-state bloc but the rules are likely to apply to Norway, 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 norms could apply to the sector.