Norway should consider a national crypto regulatory strategy, Norges Bank, the country’s central bank, said in a report on Thursday.
Countries around the world have been looking into the European Union’s regulation of crypto asset markets (MiCA), which is about to come into force. MiCA may apply within the Greater European Economic Area, but the central bank does not want to stop there: it believes there is a need to further develop specific crypto regulations, according to the report.
“Norwegian authorities should assess whether to proceed more quickly rather than waiting for international regulatory solutions,” Norges Bank Deputy Governor Pål Longva said in a public statement. “Norges Bank can contribute to these assessments and to regulation that promotes responsible innovation.”
The MiCA applies to a range of service providers in the crypto market and covers market abuse, consumer protection, market integrity and financial stability, but what it does not cover is this are “decentralized finance developments, as regulation focuses primarily on centralized market players”. says the central bank.
Norges Bank says lawmakers should take advantage of existing regulations that address systemic risk and enforcement measures, for example. The report highlighted the need for crypto-specific laws.
However, the central bank believes that there is also a need for more knowledge about exposure, attitudes and applications of crypto in Norway. Norges Bank wants to help increase knowledge in this area, the report says.