Norway’s FSA says legal framework is needed in crypto for user protection
The FSA said Tuesday there is need for a legal framework for cryptocurrency if it is becoming an investment for consumers.
The Norwegian Financial Supervisory Authority (FSA) said cryptocurrencies have received increased adoption lately but along with significant illegal and criminal activity.
In addition, the high volatility of the crypto assets incorporates a high risk of loss, the authority said.
The regulatory body noted that the cryptocurrency market will remain massively unregulated and consumer protection is needed.
European Commission presented a proposal for the regulation of the crypto market in September 2020, but the legal framework will take time to be implemented, 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.