Norway: Central Bank Urges Authorities to ‘Move Faster’ on Crypto Rules

Lavina Daryanani

Several countries from around the world have started establishing regulatory frameworks for crypto assets. A few regions have already started implementing it, while others are still in the consulting and drafting stage.

In a recent report, Norway’s central bank highlighted the need for authorities to move faster to establish a national regulatory framework for crypto assets instead of waiting for the European legislation to fully be enforced. For instance, this could include assessing how the risk associated with DeFi should be managed until a common European regulatory framework is in place.

Also Read: Crypto: Japan to Enforce Stricter AML Measures From June 1

Authorities should assess whether to proceed more quickly instead of waiting: Norway’s Central Bank

The EU recently gave its final nod to the world’s first comprehensive set of rules to regulate crypto. Firms that issue and trade crypto ought to be licensed by a national regulator starting next year. The new laws also require the identification of all crypto transactions across all member states.

MiCA regulations intend to harmonize all crypto laws among all 27 EU member states. Norway is not part of the 27-state bloc. However, Reuters pointed out that the rules will likely apply to Norway—a member of the European Free Trade Association [EFTA].

The bank’s report emphasized the need for an international framework. However, that shouldn’t hinder the native rule-making process. The report specifically noted,

“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 International Organization of Securities Commissions [IOSCO] is one such global body that has assumed the responsibility of overseeing and regulating the crypto market. It recently released a set of guidelines intended to assist authorities in strengthening their regulatory standards in the crypto sector. Its consultation report presented a series of 18 policy recommendations that it intends to finalize in early Q4, 2023.

Also Read: IOSCO Presents Comprehensive Crypto Guidelines for Regulation