[Blockchain Today Reporter Park Yo-han] The Norwegian Financial Supervisory Service has announced that it only oversees the money laundering sector of cryptocurrency companies, Cointelegraph reported.
The Norwegian Financial Supervisory Service issued a statement on the protection of cryptocurrency investors on the 22nd (local time) saying, “The Norwegian authorities are not currently supervising local cryptocurrency companies in terms of anything other than money laundering.” In accordance with this, the Financial Supervisory Service must be notified, but there is no separate supervision except for money laundering supervision.
The Financial Supervisory Service further pointed out that cryptocurrencies are vulnerable to extreme price volatility and fraud, and warned that most cryptocurrencies price formation is not transparent.
He emphasized that a legal framework and investor protection are necessary for cryptocurrency to become a suitable investment form for consumers. The Financial Supervisory Service (FSS) expected that the European Commission would adopt regulations on investor protection, market abuse, issuer licenses, etc. within five years, when the European Commission issued a regulation on the cryptocurrency market in September.
“Until these regulations are put in place, anyone considering cryptocurrency trading should carefully consider and understand the great risks of cryptocurrency investment,” he said. He added.
Norway is known as the world’s most cashless country. Only 4% of all payments in the country are made in cash. In response to the massive decline in cash use, the Norwegian Central Bank began research into digital currencies at the central bank in April 2021.
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