{"id":8704,"date":"2021-06-24T10:54:07","date_gmt":"2021-06-24T10:54:07","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/norwegian-financial-regulator-cautions-about-bitcoin-investing-as-price-tumbles\/"},"modified":"2021-06-24T10:54:07","modified_gmt":"2021-06-24T10:54:07","slug":"norwegian-financial-regulator-cautions-about-bitcoin-investing-as-price-tumbles","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/norwegian-financial-regulator-cautions-about-bitcoin-investing-as-price-tumbles\/","title":{"rendered":"Norwegian Financial Regulator Cautions About Bitcoin Investing as Price Tumbles"},"content":{"rendered":"

The Financial Supervisory Authority of Norway (Finanstilsynet) has cautioned investors about investing in cryptocurrencies as the price of bitcoin plunged Tuesday. \u201cThere is a strong need for a legal framework and investor protection if cryptocurrency is to be able to become a suitable form of investment for consumers,\u201d the regulator\u2019s consumer coordinator wrote.<\/strong><\/p>\n

Norway\u2019s Financial Regulator Warns of Crypto Risks<\/h2>\n

Norway\u2019s financial regulator, Finanstilsynet, posted a notice on its website Tuesday warning about the risks of investing in bitcoin and other cryptocurrencies. It is written by the regulator\u2019s consumer coordinator, Jo Gjedrem, a lawyer from the Norwegian Consumer Authority, the Finanstilsynet described. The warning was posted as the price of bitcoin dipped below the $30K level<\/a> Tuesday.<\/p>\n

Gjedrem began by noting that Norwegian consumers increasingly sought new investments during the coronavirus pandemic and \u201cCryptocurrency has received the attention that very few other investment options have.\u201d He detailed, \u201cThe technology is new and exciting, high-profile investors and celebrities have bought in, and influencers are marketing them on social media.\u201d<\/p>\n

However, the Finanstilsynet\u2019s consumer coordinator cautioned:<\/p>\n

Most cryptocurrencies are subject to extreme price fluctuations. The risk of loss is high \u2026 The market has also attracted significant criminal activity. Scammers use spam, computer viruses, fake drawings and a variety of other techniques to deceive consumers.<\/p>\n

He explained that cryptocurrency is largely unregulated in Norway, and there is no statutory consumer protection for cryptocurrency buyers, unlike with traditional investments.<\/p>\n

Furthermore, Gjedrem emphasized that cryptocurrency trading platforms in Norway are only obligated to comply with anti-money laundering (AML) provisions and the Finanstilsynet does not supervise them beyond that.<\/p>\n

Gjedrem noted:<\/p>\n

There is a strong need for a legal framework and investor protection if cryptocurrency is to be able to become a suitable form of investment for consumers.<\/p>\n

<\/p>\n

The lawyer pointed out that the European Commission presented a proposal in September 2020 to regulate the cryptocurrency market. The proposed rules, which are expected to be in place in four years, cover various areas, including market abuse, issuer authorization, and investor protection.<\/p>\n

\u201cUntil such regulations are in place, anyone considering trading in cryptocurrency should think carefully and understand the significant risk that such investments entail,\u201d the Finanstilsynet post concludes. \u201cConsumers who want to try this with open eyes should not invest more than they can afford to lose.\u201d<\/p>\n

What do you think about the Norwegian financial regulator\u2019s warning? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Bitcoin Investing, caution bitcoin investing, Finanstilsynet, Norway, norway bitcoin, norway crypto, norway cryptocurrency, norway financial regulator, norwegian<\/p>\n","protected":false},"excerpt":{"rendered":"

The Financial Supervisory Authority of Norway (Finanstilsynet) has cautioned investors about investing in cryptocurrencies as the price of bitcoin plunged Tuesday. \u201cThere is a strong need for a legal framework and investor protection if cryptocurrency is to be able to become a suitable form of investment for consumers,\u201d the regulator\u2019s consumer coordinator wrote. Norway\u2019s Financial…<\/p>\n","protected":false},"author":0,"featured_media":8705,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-8704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8704"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=8704"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/8704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/8705"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=8704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=8704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=8704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}