How Far has Crypto Come in Norway?

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The demand, supply, and transaction volume for digital currencies have enormously grown in Norway in the past few years. In 2021, the Norwegian government released a Financial Market Report stating that the growth of cryptocurrency in Norway in 2020 jumped to record highs.


This was a direct result of financial panic during the coronavirus pandemic. Individuals and households all over the world tried to find havens for their finances due to the uncertainty surrounding the global economy and fiat currencies.
Norwegians were not left out, as many turned to cryptocurrencies as the answer. In comparison, alternative investments were not considered as much as digital currencies.


Research conducted by Arcane Research has revealed that in 2021, 300,000 Norwegians owned some form of virtual currency. That represents 7 in every 100 Norwegian citizens. However, because just two years before, only 4% of the citizens owned Bitcoin or some other digital currency, 7% seems like a giant leap.

 

Norwegian Government Involvement in Cryptocurrency

Norway is considered the most cashless society in the world, with only 3.5% of all transactions handled with coins and cash. Based on this fact, it is safe to say that the citizens might adopt crypto faster than the average nation.
The government of the Nordic nation has frequently alternated between fully legalizing or banning crypto. The main drive for the potential ban is that the cryptocurrency industry is largely unregulated. Also, virtual currency investments carry many risks as they’re highly volatile.
 


Factors Denoting the Rise of Cryptocurrency in Norway

  • Norwegian News Outlets Covering Crypto

Decisions taken by financial investors have always relied on the news about a particular sector. The cryptocurrency industry is no different, as news outlets have started to cover happenings in the digital currency space.
Breaking news and reputable market analysis are some of the topics covered by the news media in Norway. Every action was taken by the regulatory authorities or the government in Norway and far beyond are reported instantly to help Norwegian crypto investors make better decisions.
News outlets like Investikon also go ahead of the curve to advise people on accessing cryptocurrency, purchasing digital currency, and the best crypto exchanges to use.

  • Cryptocurrency Exchanges like NBX and Firi

The rise of cryptocurrency in Norway has seen exchanges like NBX and Firi spring up. NBX is one of Norway’s most prominent digital currency exchanges, and it was launched in 2020. The website boasts more than 10,000 users.
This digital currency exchange has raised more than 60 million Krones ($7 million) from significant investors. The two digital currencies with the highest market dominance, Bitcoin and Ethereum, are supported on NBX. The exchange’s primary stablecoin is the USD coin and offers its Norwegian Krone coin.


The virtual currency exchange supports standard market order types like limit orders and stop orders. Its trading fees are a meager 0.5%. NBX also has a cashback program where individual transactions earn users 20% in points. These points possess intrinsic value as they can be exchanged for flight tickets on the Norwegian Air Shuttle.


Firi takes the top spot as far as local Norwegian crypto exchanges are concerned. The exchange boasts of close to 150,000 customers. The Financial Supervisory Authority of Norway, Finanstilsynet, regulates Firi.
The digital currency exchange provides slightly more options than NBX, with Cardano being added to the list of supported cryptocurrencies. Its fees are similar to NBX, with a 0.5% charge.


Firi places heavy priority on cybersecurity. It utilizes a mixture of two-factor authentication, multi-signature wallets, and cold storage. The exchange also partnered with a top crypto firm, Ledger Solutions, to create an insurance pool. Insurance pools serve crypto users by protecting against losses in the event of a cybersecurity breach.

  • Cryptocurrency Tax Regulation by Tax Authorities

The local tax authority in Norway, Skatteetaten, has begun to tax Norwegian cryptocurrency holders. According to the agency, citizens who hold cryptocurrency must find how much crypto they own, convert the market value by using current market exchange rates and declare it in the tax return.


This rule also holds for investors that have sold cryptocurrency or mined coins. Investors with crypto holdings of more than 1.5 million Norwegian Krones are required to pay a wealth tax of 0.7%. Capital gains on crypto transactions are also subject to a tax rate of 22%. Income tax is also subject to a 22% tax rate plus a bracketed tax.


Norway’s Financial Supervisory Authority, Finanstilsynet, has also commented on the crypto industry. The agency has stated that it will only oversee crypto firms for money laundering. Nevertheless, the authority suggested that before crypto can become a viable financial instrument, there must be a better legal framework.
 

Conclusion


The cryptocurrency industry has seen meteoric growth in a nation predisposed to cashless transactions. The government has started to get more involved in cryptocurrency in recent years. News outlets have begun to share crypto guides and breaking news. Norwegian crypto exchanges have started to spring up.
 

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