In a Thursday report, Norway’s central bank urged Norwegian authorities to consider establishing a national regulatory framework for crypto assets. In its annual “Financial Infrastructure Report”, the central bank of Norway, Norges Bank, questioned the need for the Norwegian government to depend on an international regulator to control its market.
The report mentioned how vital an international regulatory framework is but urged the Norwegian authorities to assess whether to proceed more quickly rather than wait for international regulatory solutions.
Norway May Go Beyond MiCA Regulation
The European Union’s Markets in Crypto-Assets (MiCA) regulation will soon take effect in a year or two, and its regulations will probably apply to Norway as the country is a member of the European Economic Area but not the European Union.
A lot of attention is on MiCA’s regulation as it strives to protect investors, place a comprehensive framework for issuers and service providers, and cover issues of utility tokens, asset-referenced tokens, and stablecoins.
Norges Bank spoke about its concerns on MiCA’s crypto regulation when it said:
“Such targeted regulation often fails to capture risk related to the newest technological developments and activities and can therefore be insufficiently resilient.”
The Bank advises managing the risks associated with decentralized finance until a common European regulatory framework is set in place. Emphasis was made on the need for specific crypto laws, and lawmakers are urged to use existing regulations to cater to enforcement measures and systemic risk.
The central bank believes there is also a need in Norway for more knowledge around exposure, attitudes, and applications of crypto and wants to help increase knowledge in these areas. The bank said it will continue its research about central bank digital currency and publish its findings later this year. International regulators also plan to recommend a set of global rules for crypto assets.