Norwegian authorities ‘should consider a national strategy for regulating crypto-assets’, said a Norges Bank report today.
Norges Bank, founded in 1816, is the central bank of Norway. Its 46-page Financial Infrastructure Report 2023 published today has outlined the country’s economic environment and reveals its concerns for the current state of the crypto market.
It follows the newly approved EU Markets in Crypto-assets Regulation (MiCA), expected to be implemented in the next two years, that will likely also cover Norway.
The report discusses: “Some types of risk associated with crypto-assets are covered by general regulations. At the same time, there is a need for further regulation specific to crypto-assets. Other regulatory conditions can also affect the scope of crypto-asset activity in Norway. An international regulatory framework is crucial.
“Nevertheless, the Norwegian authorities should assess whether to proceed more quickly rather than wait for international regulatory solutions. Norges Bank will contribute to such an assessment and to regulation that promotes responsible innovation.
“Security and contingency arrangements are fundamental to an efficient payment system. Faults and disruptions in the financial infrastructure can impair the ability to execute payments and have serious repercussions for society.”
It also adds: “There is ongoing work world-wide to develop and establish regulations for crypto-asset markets, but it is uncertain how long this will take.”
Norges Bank deputy dovernor Pål Longva said: “The Norwegian authorities should assess whether to proceed more quickly rather than wait for international regulatory solutions. Norges Bank can contribute to such assessments and to regulation that promotes responsible innovation.”
Norway and crypto
According to an Ernst & Young crypto report published last month, the rate of crypto ownership in Norway fell from 10% to 8% in 2022. The Scandinavian country’s 8.1% adoption rate is well behind the global 11.9% average.