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Norway’s FSA Says Legal Framework Needed in Crypto to Protect Consumers
The regulatory body stressed the cryptocurrency market remains largely unregulated and consumer protections are needed.
Oleh Tanzeel Akhtar
The Norwegian Financial Supervisory Authority (FSA) said Tuesday there is a need for a legal framework if cryptocurrency is to become a suitable form of investment for consumers.
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- In a post, the FSA said cryptocurrencies received increased attention recently along with significant criminal activity. In addition, the high volatility associated with crypto creates a high risk of loss, the authority said.
- The regulatory body stressed the cryptocurrency market remains largely unregulated and consumer protections are needed.
- In September 2020 the European Commission presented a proposal for regulation of the crypto market, but the rules won’t be in place for several years, the FSA noted.
- “Until such regulations are in place, anyone considering trading in cryptocurrency should think carefully and understand the significant risk that such investments entail. Consumers who want to try this with open eyes should not invest more than they can afford to lose,” said the FSA.
Read more: Norway’s Central Bank to Test Technical Solutions for a CBDC Over Next Two Years
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