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Overview
Norway presents an evolving landscape for cryptocurrency businesses, characterized by a regulatory framework aimed at balancing innovation with investor protection. The Financial Supervisory Authority of Norway (Finanstilsynet) oversees crypto-related activities, emphasizing compliance with stringent anti-money laundering (AML) and consumer protection regulations. To operate legally, crypto exchanges and service providers must navigate these regulations, ensuring robust security measures and transparent operational practices. Despite its cautious approach, Norway’s regulatory environment is adaptive, aiming to foster technological innovation while safeguarding financial integrity. The country’s commitment to transparency and regulatory clarity enhances trust among investors and businesses alike, positioning Norway as a potential destination for cryptocurrency ventures seeking a stable and compliant jurisdiction.
Timeframe: 5 – 7 months
Minimum paid up capital: There is no specific minimum share capital requirement for obtaining a crypto license in Norway. Companies must demonstrate financial stability.
Overview
Norway offers a favorable environment for cryptocurrency businesses with its stable economy and innovative business climate. Cryptocurrencies are treated as assets, simplifying tax compliance. The regulatory landscape is still evolving, with the Ministry of Finance requiring crypto providers to register with the financial supervisory authority and comply with anti-money laundering regulations. As of May 2023, Norway is considering adjustments to its regulatory approach, influenced by the EU’s MiCA measures.
Comprehensive Guide to Company Incorporation
General information
Company structure
- ▪A minimum of one shareholder is required, who can be an individual or a corporate entity.
- ▪At least one director is necessary. This director must be a resident of Norway to ensure compliance with local regulations.
Confidentiality
- ▪Beneficial owners’ details – disclosed to the Authorities
- ▪Shareholders’ details – part of public record
- ▪Directors’ details – part of public record
Taxation
Cryptocurrencies are treated as assets in Norway. Profits from cryptocurrency transactions are subject to a capital gains tax of 22%. Income from mining and staking is taxed as ordinary income.
Accounting requirements
- ▪Filing annual report is obligatory
Secretary – Required
Registered office – A physical office in Norway is mandatory. This is essential for regulatory compliance and effective management of the business.
The application process for a crypto license involves several steps:
- ▪Company Registration: Register the company with the Norwegian Register of Business Enterprises.
- ▪AML/KYC Policies: Develop and implement anti-money laundering (AML) and counter-terrorist financing (CTF) policies.
- ▪Documentation Submission: Submit required documents to the Financial Supervisory Authority of Norway (Finanstilsynet).
- ▪Regulatory Review: The application will be reviewed by Finanstilsynet, and additional information may be requested.
- ▪Approval: Upon satisfactory review, the license will be granted.
Key documents required for the application include:
- ▪Detailed business plan
- ▪AML/KYC policies
- ▪Proof of identity and residence for directors and shareholders
- ▪Financial statements
- ▪Proof of local office address