Finanstilsynet, a Norwegian Finance Regulator, issued a notice cautioning its customers about the risks of investing in cryptocurrency. This warning, issued in the wake of the biggest dip that bitcoin suffered last week.
Alternate Investment
Since the COVID-19 pandemic, the Norwegian public is looking for alternate methods of investments. Cryptocurrency is one of the few that grabbed the attention of the public. With the technology being extremely new and interesting and advertised by various celebs and influencers, crypto has grown into people’s minds, as mentioned by Finanstilsyent.
Norway and Cryptocurrency
They also mentioned that because cryptocurrency is extremely unregulated in Norway, there is no customer protection anyone could provide, which in turn causes security and privacy issues if not handled carefully. They also shone a light on the fact that most cryptocurrency trading platforms only comply with anti-money laundering provisions. Finanstilsynet’s supervision does not extend beyond those provisions.
The Caution
Thus, according to Finanstilsynet, there needs to be a strong legal framework and investor protection for cryptocurrency to become a suitable alternate for consumers.
Due to the extremely volatile nature and straightforward concept, people get enticed to try it out. Finanstilsynet states that they do need to proceed with caution if people do want to try crypto.
