Norway

**Report on the Current Status of Retail Trading of Cryptocurrencies in Norway**

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Identified Status**

Allowed-Regulated

**2. Detailed Narrative Explanation**

Individual citizens and residents in Norway are legally permitted to buy, sell, and hold cryptocurrencies. The activity is not banned, but it is subject to specific regulations, primarily concerning Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF), as well as taxation. Norway is also in the process of implementing the European Union's Markets in Crypto-Assets Regulation (MiCA), which will introduce a more comprehensive regulatory framework.

Historically, Norway has adopted a technology-neutral approach to regulation, meaning existing financial laws can apply to crypto assets if they fit the definitions within those laws (e.g., if a specific token is deemed a financial instrument). However, most cryptocurrencies like Bitcoin are not typically classified as financial instruments or legal tender in Norway. Instead, they are generally treated as assets for tax purposes.

**Regulatory Environment:**

*   **AML/KYC Requirements:** Since October 2018, providers of exchange services between virtual currencies and fiat currencies, as well as custodian wallet providers, have been subject to AML/CTF regulations. These entities are required to register with the Financial Supervisory Authority of Norway (Finanstilsynet) and implement customer due diligence (CDD) and know-your-customer (KYC) measures. These measures are based on the EU's Fifth AML Directive and recommendations from the Financial Action Task Force (FATF). The Norwegian Anti-Money Laundering Act requires these service providers to report suspicious transactions to the Norwegian Economic Crimes Unit.
*   **Taxation:** Profits from the sale or exchange of cryptocurrencies are considered capital gains and are taxed at a rate of 22%. This applies even when swapping one cryptocurrency for another. Losses are deductible. Furthermore, cryptocurrency holdings are subject to wealth tax and must be reported annually in tax returns. The Norwegian Tax Administration (Skatteetaten) provides guidance on the taxation of virtual assets.
*   **Regulatory Authorities:** The primary regulatory bodies involved are Finanstilsynet, which supervises financial market participants including crypto service providers for AML compliance, and the Ministry of Finance, which is responsible for financial legislation. Økokrim (the National Authority for Investigation and Prosecution of Economic and Environmental Crime) also plays a role in addressing financial crime related to cryptocurrencies. Norges Bank (the central bank of Norway) is researching a central bank digital currency (CBDC) but does not currently support any cryptocurrency.
*   **Upcoming MiCA Implementation:** Norway, as part of the European Economic Area (EEA), is set to implement the EU's MiCA regulation. Legislative proposals for its implementation were presented by the Ministry of Finance on March 7, 2025. MiCA will establish a more comprehensive framework for the issuance, offering, and trading of crypto assets, as well as for service providers, aiming to enhance investor protection, market integrity, and financial stability. This will mark a significant shift from the current specific laws which are limited to KYC/AML rules for exchanges and custody providers. The Transfer of Funds Regulation (TFR II), which sets out requirements for crypto asset service providers to collect and verify information about senders and recipients of crypto asset transfers, is also being incorporated into Norwegian law. It is anticipated that MiCA will be enacted before summer 2025, with proposed transitional rules expiring on December 30, 2025.
*   **Consumer Warnings:** Finanstilsynet has issued warnings to consumers about the risks associated with cryptocurrency trading, highlighting extreme price volatility, the risk of loss, lack of transparent price formation in many cases, and the prevalence of scams and criminal activity. There is no statutory consumer protection for buyers of cryptocurrency in the same way as for regulated savings and investment products, although the Financial Contracts Act might apply to crypto assets.
*   **Crypto Mining:** While crypto mining is legal in Norway, it has faced political scrutiny due to energy consumption. The reduced electricity tax for data centers and cryptocurrency mining was discontinued in 2023. More recently, in June 2025, the Norwegian government announced it is considering a temporary ban on new crypto mining data centers, with a decision potentially in autumn 2025, to conserve energy.

In summary, retail trading of cryptocurrencies in Norway is allowed but operates within a defined regulatory framework focused on AML/CTF and taxation. The upcoming implementation of MiCA will further solidify and expand this regulatory oversight.

**3. Specific, Relevant Text Excerpts**

*   **Global Legal Insights (2024-10-25):** "In Norway, AML measures apply to virtual currencies. These regulations are based on the EU's Fifth AML Directive and recommendations from the Financial Action Task Force (FATF)."
*   **Global Legal Insights (2024-10-25):** "Today, for anti-money laundering (AML) purposes, providers of exchange and custody services of virtual currency must be registered with the FSA [Finanstilsynet]."
*   **Global Legal Insights (2024-10-25):** "Ownership of cryptocurrency must be reported in tax returns and is subject to wealth tax as for any other asset."
*   **Skatteetaten (Norwegian Tax Administration):** "With regards to taxation, virtual currencies such as cryptocurrency, digital tokens and other digital assets are considered assets. All income from virtual assets is taxable. Income from assets is considered capital income and is taxed at a rate of 22 percent."
*   **KPMG (via Schjødt) (2025-04-29):** "On March 7, 2025, the Ministry of Finance presented two legislative proposals, Prop. 54 LS (2024–2025) and Prop. 55 LS (2024–2025), for the implementation of the EU's Digital Operational Resilience Act (DORA), Markets in Crypto-Assets Regulation (MiCA), and Transfer of Funds Regulation II (TFR II) into Norwegian legislation."
*   **KPMG (via Schjødt) (2025-04-29):** "It is proposed that the MiCA Regulation will apply directly as Norwegian law. This marks a significant shift in the regulation of crypto assets in Norway, where currently, specific laws targeting crypto assets are limited to KYC regulations and rules for providers of crypto exchange and custody services."
*   **Finanstilsynet (via Global Legal Insights, referencing a 2024 publication):** "Finanstilsynet.no, information about fraud related to cryptocurrency, 2024 ( https://www.finanstilsynet.no/forbrukerinformasjon/svindel-med-kryptovaluta ) (Nw)." This indicates ongoing consumer warnings.
*   **ICLG.com (2024):** "Since 15 October 2018, providers engaged in exchange service between virtual currencies and fiat currencies and custodian wallets providers have been subject to AML requirements, including registration and supervision by the Norwegian Financial Supervisory Authority."
*   **Reuters (via Silicon UK, 2025-06-20):** "Norway is planning to impose a temporary ban on the establishment of new data centres that mine cryptocurrency... A temporary ban could be introduced during the autumn of 2025, the Norwegian government reportedly said."
*   **PwC Global Crypto Regulation Report 2025 (2025-03-21):** "According to Norway's Financial Supervisory Authority (FSA), cryptocurrencies are largely unregulated, and consumer protections are needed. In contrast to regulated savings and investment products, there is no statutory consumer protection for buyers of cryptocurrency. However, FSA has argued that the Financial Contracts Act applies to crypto assets. The Norwegian Anti-Money laundering (AML) regulations cover cryptocurrency exchanges and wallet providers."
*   **PwC Global Crypto Regulation Report 2025 (2025-03-21):** "It is now decided to incorporate MiCAR in the EEA Agreement and the Norwegian government has introduced a bill to incorporate MiCAR into Norwegian law. It is anticipated that this legislation will be enacted before the summer, as the proposed transitional rules expire on December 30, 2025."

**4. Direct, Accessible URL Links**

*   **Global Legal Insights - Blockchain & Cryptocurrency Laws and Regulations 2025 | Norway:** https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/norway (Note: While the primary link is to a chapter summary, the content reflects information up to October 2024 and cites Finanstilsynet directly. Specific sub-links from the search result point to detailed sections.)
*   **KPMG Law Norway (via Schjødt) - Norway takes steps towards Digital Operational Resilience and Crypto-Asset Regulation (2025-04-29):** https://www.schjodt.com/news-and-views/norway-takes-steps-towards-digital-operational-resilience-and-crypto-asset-regulation/ (This article was found via a search result pointing to kpmg.com, but the direct source is Schjødt, referencing KPMG Law Norway).
*   **Skatteetaten - Tax regulations - virtual assets:** https://www.skatteetaten.no/en/business-and-organisation/reporting-and-industries/industries-special-regulations/internet/tax-and-vat-on-virtual-currencies/tax-regulations---virtual-assets/
*   **Finanstilsynet - Consumer information on cryptocurrency fraud (in Norwegian, as referenced):** https://www.finanstilsynet.no/forbrukerinformasjon/svindel-med-kryptovaluta/
*   **ICLG.com - Fintech Laws and Regulations Report 2024-2025 Norway:** https://iclg.com/practice-areas/fintech-laws-and-regulations/norway
*   **Manimama Law Firm - Norway – Regulation of Crypto and Virtual assets:** https://manimama.com/company-formation/europe/norway/norway-regulation-of-crypto-and-virtual-assets/
*   **Gofaizen & Sherle - Norway crypto license:** https://gofaizen-sherle.com/no/crypto-license/norway
*   **Freeman Law - Norway and Cryptocurrency:** https://freemanlaw.com/norway-and-cryptocurrency/
*   **Kryptos.io - Norway Crypto Tax Guide 2025:** https://kryptos.io/crypto-tax-guide/norway/
*   **Coincub - Best Crypto Exchange Norway:** https://coincub.com/no/best-crypto-exchange-norway/
*   **Cointelegraph - Norway’s government explores crypto mining ban amid energy supply concerns (2025-06-20):** https://cointelegraph.com/news/norway-government-explores-crypto-mining-ban-energy-supply-concerns
*   **Thomson Reuters - Compendium: Cryptocurrency regulations by country (2022-04-01, general reference, Norway section):** https://www.thomsonreuters.com/en-us/posts/legal/cryptocurrency-regulations-country/ (While older, it provides historical context on warnings and AML).
*   **Silicon UK - Norway Plans Temporary Ban On New Crypto Mining Data Centres (2025-06-20):** https://www.silicon.co.uk/news/norway-temporary-ban-crypto-mining-480600
*   **Binance Square (adeepsofyeny) - The Norwegian government announced today, Friday, plans to... (2025-06-20):** https://www.binance.com/en/feed/post/2024-06-21-the-norwegian-government-announced-today-friday-plans-to-1000000030090-1048689155005
*   **Divly - Guide to declaring crypto taxes in Norway (2024):** https://divly.com/en/guides/crypto-taxes-norway
*   **Nasdaq - Norway Plans to Temporarily Ban New Bitcoin & Crypto Mining Centers to Conserve Energy (2025-06-20):** https://www.nasdaq.com/articles/norway-plans-to-temporarily-ban-new-bitcoin-crypto-mining-centers-to-conserve-energy
*   **PwC Global Crypto Regulation Report 2025 (March 2025, specific page for Norway likely within the report):** While a direct link to the Norway-specific page isn't available from the search, the report itself is a key source. The search result provided snippets relevant to Norway. A general link to where PwC publications might be found or purchased would typically be the publisher's site. For the purpose of this report, the information is cited from the search result.