Cryptocurrencies in Norway

Quick Glimpse of Cryptocurrencies as Part of Norges Lifestyle

Cryptocurrencies are very much a part of Norges lifestyle and of Norway’s taxation system; bitcoins as assets, as income and as a means, are all subject to tax. That being said cryptocurrency is legal in Norway, but is classified as an asset and not recognized as a form of currency.

Tax rates on digital money earned from mining activities depend on the size or scale of the blockchain transactions from which the income was earned. On the other hand, income from the sale of cryptocurrencies are recognized as income from sale of capital assets, and therefore subject to payment of Capital Gains Tax.

Since the Norwegian government actively takes part in controlling the economies of the nation, all cryptocurrency market operators are required to register with the Norwegian Financial Supervisory Authority. The latter is the government agency tasked to oversee that all Norwegian financial companies are operating in accordance with the laws and regulations legislated by Stortinget, Norway’s supreme legislature.

Inasmuch as cryptocurrencies are recognized as assets in Norway, Norges banks do not release loàn proceeds by way of digital money. After all, the value of crypto money is volatile, being dependent on the level of supply and demand. That is why not even a short-term no-credit check loan per minute or lån på minuttet uten kredittsjekk can be released in the form of digital currency.

How Norwegians Buy Cryptocurrencies?

In Norway, the most common form of cryptocurrency in use is bitcoin, while most Norwegians purchase their bitcoins from leading crypto-exchange entity Bitcoins Norway (BN). Mainly because Bitcoins Norway has ties with the largest Norges bank DNB ASA, specifically in relation to the use of the bank’s mobile phone app Vipps. Bitcoin purchasers however must have a registered account with BN through which they can purchase or send bitcoins to other cryptocurrency users.

DNB’s Vipps app enables BN customers to complete their bitcoin transactions using their credit or debit card as mode of payment. That is regardless of whether a BN customer maintains a deposit account with DNB. Statistical reports show that about 43 percent of Vipps app users are not DNB customers, while 27% of the entire Norwegian population are actively using the DNB Vipps app.

Posted by Lucia Kerri