Is Cryptocurrency And Bitcoin Legal in Norway? Full Answer!

Cryptocurrencies such as Bitcoin and Ethereum are as popular as ever, and many countries have implemented laws and regulations to combat the use of these cryptos. But what are cryptos like in Norway, and are Bitcoin and other cryptocurrencies even legal?

Both Bitcoin and other cryptocurrencies are completely legal in Norway, and you are not breaking any laws by buying, selling, investing or using any cryptocurrencies. However, you are required to pay taxes of all crypto investments, and the Norwegian tax office spend a lot of time tracking down “crypto millionaires”.

Bitcoin and other cryptocurrencies are legal in Norway.
Bitcoin and other cryptocurrencies are legal in Norway.

Pay your taxes, and you’re fine

There are currently no laws or regulations in place to prevent anyone from doing any business in Bitcoin or other cryptocurrencies, and there does not seem to be any plans or political interest in implementing this.

This means that you are fine to use Bitcoins and other currencies as you wish, and you won’t get in any trouble as long as you:

  1. Don’t use the cryptos for anything illegal.
  2. Pay taxes on potential earnings.

Many people are under the impression that it’s impossible to track Bitcoin and other cryptocurrencies, but the Norwegian Tax Office spend a lot of resources on exactly this. You should be prepared to pay taxes if you make any profit on Bitcoin or crypto investments, and you are supposed to report it on your yearly Tax Submission.

If you’re withdrawing a large sum of money from crypto, be prepared to also be able to prove where the money comes from. You might need to prove that it does not originate from illegal activities, which has often been tied to cryptocurrencies internationally.

KYC regulations for Bitcoin in Norway

Like most of the modern world, Norwegian banks and vendors that deal with cryptocurrencies are bound by the KYC (Know Your Customer) laws. This means that they must report any suspicious activities.

Buying, selling, owning, holding, mining, investing or other regular cryptocurrency activities are not enough to trigger such a warning by itself, but the banks and financial institutions are required to notify the police and tax office if they find you suspicious.

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