Norway and Cryptocurrency

Norway Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Since 2018, Norway’s Central Bank has not recognized cryptocurrency as a legal tender, but regulations for money service businesses dealing in crypto and crypto wallet providers are in place.[1] Norway’s Finance Department issued the Regulation on Money Laundering, specifically targeting cryptocurrency business, effective October 15, 2018.[2] The regulation requires platforms facilitating crypto trades, exchanging crypto and fiat currencies, and storing cryptocurrency, to register with Norway’s Financial Supervisory Authority (FSA) and implement anti-money laundering procedures under the Money Laundering Act.[3] Individuals buying and selling crypto are exempt from AML compliance procedures.[4]The sale of cryptocurrency is not subject to value-added tax (VAT), but is subject to Capital Property Income tax and “other tax” procedures.[5] Capital gains are not automatically reported by Norway’s Tax Administration and should be reported as “Tax value of other securities” on Norway’s tax return for individuals who realized gains, while miners need to report capital gains from mining under Norway’s “Other income” section on the tax form[6] ICO’s are analyzed on a case by case basis to determine VAT liability, and businesses selling power for mining operations are subject to VAT.[7]

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.  The globe below provides links to country-by-country summaries:

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Is cryptocurrency legal in Norway?

Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[1] Cryptocurrency World Survey, Norway, https://www.loc.gov/law/help/cryptocurrency/world-survey.php#norway

[2] Elin Hofverberg, Regulatory Approaches to Crypto assets: Norway (April 2019), https://www.loc.gov/law/help/cryptoassets/norway.php; Kerin, Norway Steps up Crypto Regulations for Crypto Service Providers, Coinpedia.org (Oct. 8, 2018), https://coinpedia.org/news/new-rules-norwegian-crypto-service-providers/

[3] Id.

[4] Supra note 9.

[5] Id.

[6] Skatteetaten.no, Tax and VAT Relating to Bitcoin and Other Virtual Currencies, https://www.skatteetaten.no/en/business-and-organisation/reporting-and-industries/industries-special-regulations/internet/tax-and-vat-on-virtual-currencies/.

[7] Id.

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