Norway should consider a national strategy for crypto regulation, said Norges Bank, the country's central bank, in a Thursday report.
Countries around the world have been looking at the European Union's Markets in Crypto Assets (MiCA) regulation, which is close to taking effect. MiCA may apply within the broader European Economic Area, but the central bank does not want to stop there: it believes there is a need to further develop specific crypto regulations, the report said.
The collapse of stablecoin issuer Terra and crypto exchange FTX has also encouraged regulators to speed up efforts to regulate the sector.
“The Norwegian authorities should assess whether to proceed more quickly rather than wait for international regulatory solutions," said Norges Bank Deputy Governor Pål Longva in a public statement. "Norges Bank can contribute to such assessments and to regulation that promotes responsible innovation.”
MiCA applies to a range of service providers in the crypto market and covers market abuse, consumer protection, market integrity and financial stability but what it does not cover is "developments in decentralized finance as the regulation’s primary focus is on centralised market participants," the central bank said.
Norges Bank says lawmakers should take advantage of existing regulations that cater to systemic risk and enforcement actions for example. The report stressed the need for crypto specific laws.
However, the central bank believes there is also a need for more knowledge around exposure, attitudes and applications of crypto in Norway. Norges Bank wants to help increase knowledge in this area, the report said.