Nordic countries are generally considered as the more “open-minded” bunch of the European continent. In fact, they are considered to be the most tech-savvy countries, so saying that their regulators are terrified by the trademark technology of the last decade is kind of controversial. However, cryptocurrencies have a very distinct feature among them, a feature that most tech innovations don’t have or don’t even refer to. Cryptocurrencies are basically units of money, they can be traded, they can be used as payments and most importantly, they are sometimes impossible to track.
Think like a law-maker
Try to imagine yourself in the shoes of a Norwegian law-maker. Your country has finally been able to reach results in terms of security thanks to effective management and governance of funds and the economy. Suddenly, this new thing that can potentially generate millions of dollars appears on your territory and you can’t control it and you don’t know anything about it. It is only natural for a government to immediately put a temporary ban on the asset to take time and analyze it. Although there is no ban on the asset right now, the government did indeed have a tough time adjusting to it.
The state of affairs
Although the undocumented transactions are a large part as to why the government was concerned about cryptocurrencies, they are not nearly as big as concerns about access to illegal gambling platforms.
You see, online gambling is an extremely controversial topic in Norway, the primary reason is that it is completely banned. According to www.nyecasino.casino, only 2 state-commissioned companies have the right to provide gambling services and that as well on a restricted level. In the past, illegal online gambling operators were easily found and revoked thanks to the tracking abilities of bank transactions. Once a local gambler made the mistake of transferring funds from their bank account, the government was immediately informed that it was made on an unlicensed gambling platform, which was then swiftly dealt with. But now more and more of these operators are able to support cryptocurrency payments. Furthermore, cryptos are very popular with the Norwegian population, therefore the illegal activity could potentially grow to volumes where the government just won’t be able to handle it.
A way out?
The best solution for the Norwegian government is to abolish these restrictions on online gambling activities. Although the overall statistics will grow, at least they will be on a maintainable level, and the government will be aware which operators are fair to their customer base and which ones are involved in money-laundering.
As of now, nothing too serious is being implemented as the government is weighing its options. The worst case scenario is a nation-wide ban on cryptos, which will just reap even worse consequences. The past has proven to us many times that banning a certain activity does nothing else but attract more attention and make it more problematic, e.g. the prohibition of alcohol in the USA.
Giorgi is a news reporter and financial analyst at www.forexnewsnow.com He has 3 years of experience in analyzing the financial markets of Forex and cryptocurrencies. He also likes making hidden jokes in his articles.