• Regulators in Norway warn about cryptocurrency scams.
• The Nordic country joins the crypto regulators of the United Kingdom and Europe.
Finanstilsynet, Norway’s largest financial supervisory authority, has become the latest regulator in Europe to discuss cryptocurrencies. This financial agency alerts traders about cryptocurrency volatility and business risks. Although this is not a significant announcement to the crypto community, it will affect investors in the Nordic region.
This warning from regulators in Norway comes after many retail consumers invested in crypto. These cryptocurrency fans in the country take them as a decentralized investment and savings.
The user coordinator at Finanstilsynet, Jo Gjedrem, said that most crypto is subject to price fluctuation. They had even lost a good part of their market value due to the crackdowns from China weeks ago.
In addition, Gjedrem indicates that the risk of losses from crypto investment is high and that transparency in the market is non-existent. According to reports from other countries, the major crypto platforms have participated in money laundering and scams. This causes the decentralized market to lose trust among global financial organizations.
Norway regulators speak out on crypto’s vulnerability
Norway’s regulatory agency is also concerned about the growth of cryptocurrency scams. Finanstilsynet suggests that scammers use spam, fake drawings, computer viruses, and various methods to mislead investors. These cyber-attacks have also increased with Covid, mainly in the United States.
Finanstilsynet’s warning continues with other regulators in Norway, such as the US SEC and UK FCA. Regulators agree by saying that cryptocurrencies are unregulated, which is why it is their discontent. There is no centralized protection for investors to trade day and night.
Norwegian regulators’ actions against cryptocurrencies
Although the Norwegian regulators did not clarify their measures against the decentralized market, they may be serious. In addition to Finanstilsynet, two more companies disapprove of the crypto market since its inception. All this occurs as Bitcoin, and other cryptocurrencies show a bearish outlook after reaching their all-time high.
The cryptocurrency commercialization in the Nordic country is still ongoing but with eventual regulatory attacks. These regulations have gained fame in Europe, most of all in the UK, where many banks prohibit them. However, there are other methods for the investor to have their Bitcoin or other Altcoin tokens available.
Bitcoin price has gone below $32,000 this Tuesday, with investors awaiting an increase in value. Coinbase cryptographers clarify that the token may skyrocket in value before the year runs out. Although speculative advertisements haunt the cryptocurrency, this may be true.
In the coming weeks, Norway residents will probably see steps taken towards regulations against cryptocurrencies. Likely, some banks in Norway will not accept transactions to buy cryptocurrencies, just as being imolemented in the United Kingdom.