With bitcoin (BTC) falling to a six-month low below $ 30,000 on Tuesday, the Norwegian financial regulator warned investors that the country’s cryptocurrency industry is largely unregulated.

Finanstilsynet, or Finanstilsynet, issued a consumer protection declaration for crypto investors on 22 June, confirming that the agency does not currently control domestic crypto companies in relation to anything other than money laundering:

“These platforms are required to notify Finanstilsynet in accordance with the regulations against money laundering, but apart from the supervision of money laundering, Finanstilsynet does not control these units.”
Finanstilsynet also mentioned the most important risks associated with trading in cryptocurrencies, such as extreme price volatility and fraud. The authorities noted that the formation of prices for cryptocurrency “in many cases is not transparent.”

The agency further said that there is an urgent need for a legal framework and investor protection “if crypto is to become an appropriate form of investment for consumers.” Finanstilsynet reported that the EU Commission sent a proposal to regulate the cryptocurrency market in September last year and plans to adopt rules on investor protection, market abuse and issuer licensing within five years.

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“Until such rules are adopted, anyone considering trading cryptocurrency should think carefully and understand the significant risks associated with such investments. Finanstilsynet concluded that consumers who want to try this should not invest more than they can afford to lose.

Norway is known as the most cashless country in the world, as only 4% of payments in the country are made in banknotes and coins. In response to a sharp decline in the use of cash, the Central Bank of Norway began a search for the central bank’s digital currency in April 2021.

Source: CoinTelegraph