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Norway’s financial regulator has announced new regulations specifically aimed at cryptocurrency providers which will take effect on October 15.
The Norwegian Financial Supervisory Authority (FSA) is enforcing the regulations as part of a government push to ensure that Norwegian cryptocurrency exchanges and those overseas operating in the country observe domestic money laundering rules.
The laws won’t affect individuals trading in cryptocurrencies in Norway as the FSA has specifically stated that the new legislation will only affect, “Norwegian providers of virtual currency exchange and storage services.”
Thus, those storing private keys on behalf of customers are considered to be involved in “the transfer, storage or purchase of virtual currency” and come under the new guidelines. However, “Storage solutions that do not store private cryptographic keys (often referred to as non-custodial wallets) are not covered by the regulations,” such as “Individuals who buy or sell their own virtual currencies for private purposes” and those who “assist friends and acquaintances with the purchase and sale of virtual currencies” won’t be subject to the FSA’s new reporting requirements.
Norway is one of a growing number of nations exploring the viability of a central bank cryptocurrency. There is no specific law telling Scandinavian banks how to view cryptocurrency, there is, however, anti-money laundering legislation already in place. These laws demand that those offering financial services must follow KYC practices. Another Scandinavian central bank, Sweden’s Riksbank, has considered its own cryptocurrency e-krona, with the same motivations as its Norwegian neighbor, having observed cash use on the decline across the country.
The focus has fallen on Norway recently with more cryptocurrency miners reportedly looking to move their operations to Norway and its Swedish neighbor. Hydroelectricity and other renewables from more developed European countries allow for cheaper electricity tariff’s beneficial to profits, as electricity is the main overhead in the crypto mining process.
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