The bank suggests that policymakers should utilize current regulations addressing risks and enforcement actions, while emphasizing the necessity for specific regulations tailored to cryptocurrencies.
Norway’s central bank, Norges Bank, has recommended that the country should contemplate developing a national plan for regulating cryptocurrencies, according to a report published on Thursday.
Countries worldwide have been observing the upcoming implementation of the European Union’s Markets in Crypto Assets (MiCA) regulation. While MiCA may have applicability within the broader European Economic Area, the central bank expressed the view that it should not end there. The bank emphasized the importance of advancing specific regulations specifically tailored for cryptocurrencies.
The recent failures of stablecoin issuer Terra and crypto exchange FTX have served as catalysts for regulators to expedite their efforts in regulating the cryptocurrency industry.
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In a public statement, Norges Bank Deputy Governor Pål Longva recommended that Norwegian authorities consider the option of advancing their regulatory efforts rather than waiting for international solutions. Longva emphasized that Norges Bank can play a role in conducting assessments and establishing regulations that support responsible innovation in the cryptocurrency sector.
The central bank highlighted that while the Markets in Crypto Assets (MiCA) regulation encompasses various service providers in the crypto market and addresses aspects such as market abuse, consumer protection, market integrity, and financial stability, it does not specifically address developments in decentralized finance (DeFi). The primary focus of the regulation remains on centralized market participants, according to the central bank.
The report from Norges Bank emphasized the importance of lawmakers utilizing existing regulations that address systemic risk and enforcement actions, among other areas. Additionally, the report highlighted the necessity for specific laws tailored to the cryptocurrency industry.
The central bank recognizes the importance of enhancing understanding regarding exposure, attitudes, and applications of cryptocurrencies in Norway. Norges Bank aims to contribute to the expansion of knowledge in this domain, as stated in the report.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.