Norway’s Compliance Requirements for Crypto Trading: No Room for Error

Regulatory Landscape in Norway

Oslo, Norway - Since 2018, Norway’s central bank has not recognized cryptocurrency as a legal tender. However, the country’s Finance Department introduced the Regulation on Money Laundering in October 2018, which specifically targets cryptocurrency-related activities.

Compliance Requirements for Crypto Service Providers

Under this regulation, platforms facilitating crypto trades, exchanging crypto and fiat currencies, and storing cryptocurrency must:

Register with Norway’s Financial Supervisory Authority (FSA)
Implement anti-money laundering procedures under the Money Laundering Act

These compliance requirements do not apply to individuals buying and selling crypto.

Taxation of Cryptocurrency Sales in Norway

Cryptocurrency sales in Norway are not subject to value-added tax (VAT), but are subject to:

Capital Property Income tax
“Other tax” procedures

Individuals must report capital gains as “Tax value of other securities” on their tax return, while miners must report capital gains under the “Other income” section.

ICO Sales and VAT Liability

The sale of initial coin offerings (ICOs) is analyzed on a case-by-case basis to determine VAT liability. Businesses selling power for mining operations are subject to VAT.

Expert Insights: Compliance is Crucial

“Many jurisdictions lack clear laws governing cryptocurrencies, leaving crypto miners uncertain about their legal status,” said [Name], an expert in cryptocurrency law. “In Norway, however, strict regulations are in place to ensure the integrity of the financial system and prevent money laundering.”

Takeaways for Individuals and Businesses

For individuals and businesses operating in the cryptocurrency space in Norway:

Familiarize yourself with regulatory requirements to avoid fines and penalties
Seek expert guidance on digital currencies, tax planning, and compliance from a reputable provider like Freeman Law