Norway thinks MiCA may not complete all regulation needs

The central bank of Norway hinted that it will develop its crypto regulation system & will not fully rely on the global regulatory framework.

Crypto trading is fully legal in Norway. Under the Norwegian Tax Administration, cryptocurrency is a form of property, and the sale or exchange of cryptocurrency is subject to capital gains tax. The EEA includes EU countries and also Iceland, Liechtenstein, and Norway. It allows them to be part of the EU’s single market.

Recently Norges Bank, the central bank of Norway, published its annual report on financial infrastructure. In the report, the central bank noted that the EU’s MiCA rule will come in the next 2 years and it will also be applicable in the country.

The central bank confirmed that MiCA’s rules will be first assessed by the Ministry of Finance EEA relevance, before implementation in the country.

According to Norges Bank, MiCA can’t sufficiently target the whole crypto sector regulation, so we can say that MiCA can’t complete all the crypto regulation needs.

“Such targeted regulation often fails to capture risk related to the newest technological developments and activities and can therefore be insufficiently resilient,” Norges Bank stated.

In particular, the central bank pointed out that MiCA is not covering the regulation of the decentralised finance (Defi) sector. 

In these ways, Norges Bank indirectly confirmed that it will develop its crypto regulation infrastructure alongside MiCA’s rules adoption.

It is worth it to note that over a couple of months, a few EU members confirmed that they will develop their own Crypto regulation framework because it will take a huge time for MiCA, so in the meantime, it is necessary to bring laws as soon as possible to prohibit the bad actors.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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