Norwegian FSA believes there is an urgent need to protect cryptocurrency investors

In Bitcoin (Bitcoin) Fall to Below a six-month low of $30,000 On Tuesday, the Norwegian financial regulator warned investors that the cryptocurrency industry is largely unregulated in the country.

The Norwegian Financial Supervisory Authority, or Finanstilsynet, Publish The statement on the consumer protection of crypto investors on June 22 emphasized that the agency does not currently supervise anything other than money laundering by local crypto companies:

“These platforms must notify Finanstilsynet in accordance with money laundering regulations, but except for money laundering supervision, Finanstilsynet does not supervise these actors.”

Finanstilsynet further pointed out the main risks associated with cryptocurrency trading, such as extreme price fluctuations and fraud vulnerabilities. The authorities pointed out that the formation of encryption prices “is not transparent in many cases.”

The agency continued, “If cryptocurrency is to become a form of investment suitable for consumers, a legal framework and investor protection are urgently needed.” Finanstilsynet mentioned the European Commission make a suggestion Regarding the encryption market regulations in September last year, it is expected that rules on investor protection, market abuse, and issuer authorization will be passed within five years.

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“Before such regulations are in place, anyone considering trading cryptocurrencies should carefully consider and understand the significant risks posed by such investments. Finanstilsynet concluded that consumers who want to try this approach should not invest more than they can afford. Loss.

Norway is known as the most cashless country in the world. Only 4% of payments in the country are made with paper money and coins.In response to the sharp decline in the use of cash, the Norwegian Central Bank Start the central bank digital currency research April 2021.