With Bitcoin ( BTC ) falling to six-month lows below $30,000 on Tuesday, Norway's financial regulator warned investors that the cryptocurrency industry is largely unregulated in the country.
The Norwegian Financial Supervisory Authority or Finanstilsynet published a statement on consumer protection for crypto investors on June 22, highlighting that the regulator does not currently oversee local crypto companies for anything other than money laundering.
Finanstilsynet further pointed out the main risks associated with cryptocurrency trading, such as extreme price volatility and vulnerability to fraud. The authority noted that the price formation of cryptocurrencies "in many cases is not transparent."
The agency added that there is a strong need for a legal framework and investor protection "if cryptocurrency is to become a suitable form of investment for consumers." Finanstilsynet mentioned that the European Commission presented a proposal to regulate the cryptocurrency market last September, expecting to adopt rules on investor protection, market abuse and issuer authorization within five years.
