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In contrast to other European nations, like Switzerland, Norway doesn’t use cryptocurrency as frequently or as the norm. Although it is undoubtedly influential enough for Norwegians to experiment with it and for the Norwegian government to begin looking into the sector. Norway generally has a neutral attitude toward the idea of cryptocurrencies, bordering on caution. Therefore, if you intend to invest in cryptocurrencies in Norway, follow the rules exactly and get ready for some legal ambiguities.
Due to the pandemic and the rising demand for new saving and investment options among Norwegian consumers, the market for virtual assets and currencies has been expanding quickly in recent years. Additionally, there is a steady growth of virtual currency exchanges and fund platforms where users can buy, sell, and send payments in cryptocurrencies or other digital assets compatible with fiat gateways.
In other words, despite the lack of regulation and the ongoing market uncertainty, cryptocurrency investments have continued to grow significantly and steadily. This demonstrates the enormous interest in and demand for cryptocurrency among investors in Norway. The taxation of crypto assets remains the only unambiguous regulation at this time. The Norwegian government will undoubtedly begin formal regulation and oversight of the cryptocurrency sector sooner or later.
Let’s examine Norway’s history, legality, market, and top cryptocurrency wallets.
What Are The Best Crypto Exchanges for Norwegian Customers?
History of Cryptocurrency in Norway
Since cryptocurrency was first introduced in 2008, it wasn’t until 2018 that Norwegians showed any interest in it, and it didn’t really take off until the beginning of the pandemic in 2020. Demand, supply, and transaction volume all rose significantly in 2020 and have kept rising ever since.
The Norwegian nation, which has the most cashless transactions worldwide, has frequently alternated between fully legalizing or outlawing cryptocurrency. And for the past few years, Norwegian cryptocurrency investors have been stuck in an unregulated cryptocurrency market as internal debate over legalizing versus outright banning the currency has raged. As a result, investments in virtual currencies are much more versatile than those in other nations. Most people don’t let this discourage them from investing, though, and by 2021, more than 300,000 Norwegians will have some sort of involvement in the cryptocurrency sector.
The Norwegian media’s efforts to cover these topics in mainstream media and the promotion of various services and cryptocurrency tokens to invest in are more indicative of the country’s adoption of cryptocurrencies.
Is it Legal to Purchase Crypto in Norway?
The Norwegian government is gradually introducing various regulations for both the cryptocurrency industry and its customers because Norway’s Central Bank, Norges, has not yet recognized cryptocurrencies as legal tender.
The anti-money laundering regulation was released by the Norwegian Finance Department with a specific focus on cryptocurrency businesses. According to the rule, platforms that facilitate cryptocurrency trades, exchange crypto for fiat currencies, and store cryptocurrency must register with Norway’s Financial Supervisory Authority (FSA) and follow the anti-money laundering act’s anti-laundering protocol.
Additionally, the AML compliance process does not apply to people who buy and sell cryptocurrency. Instead of being subject to value-added tax (VAT), the sale of cryptocurrencies is subject to Capital Property Income Tax and other taxation laws. The taxation of cryptocurrency owners was governed by the Skatteetaten, a local tax administration in Norway. According to their regulations, individuals who own cryptocurrency are required to disclose the quantity of their holdings, check the market exchange rates, and include it in their tax returns.
Apart from that, there are generally ambiguous regulations that must be met in order for crypto businesses to function. Now that we know that, let’s look at how to purchase cryptocurrency in Norway.
How to Buy Cryptocurrency in Norway?
The process of buying cryptocurrencies is fairly straightforward in Norway. In the country, there are two ways to buy cryptocurrencies.
- The first is accomplished through the use of a Bitcoin ATM
- The second is accomplished through an exchange on a cryptocurrency exchange platform.
See how to do both!
There are a few Bitcoin ATMs located throughout Norway that allow you to deposit or buy Bitcoin, as well as other cryptocurrencies, using an automated teller machine. To purchase Bitcoin, you only need your crypto wallet, some cash, and a teller machine at these specialized ATMs. Locate the nearest automated teller machine and proceed as follows with cash and your cryptocurrency wallet’s QR code:
Find the nearest Bitcoin ATM and bring cash, your wallet's address, and its QR code.
Using the machine's touch screen, select Bitcoin (BTC) or any other cryptocurrency. Take the QR code from the address in your crypto wallet and show it to the machine's camera. Confirm your purchase after the camera has finished scanning.
Put your money into the machine. Examine the total cost of the purchase as well as the service charge.
After the confirmation, wait for the Bitcoins to appear in your crypto wallet.
The second and most convenient method is to use cryptocurrency exchange platforms. These are web-based platforms that allow you to manage your cryptocurrency assets, including deposits, withdrawals, investments, trading, and management, from the comfort of your own home.
There are several great choices that have all registered with the Norwegian authorities mentioned in the legality section and obtained the required AMF licenses. Bitpanda, Coinbase, eToro, Kraken, and other exchanges are among those that abide by the law.
Open a desktop or laptop that is connected to the Internet, and let’s start purchasing some cryptocurrencies:
To register and verify your account, go to the cryptocurrency exchange's website. You may be asked to provide a valid ID card as well as some personal information. When you're done, you should be able to use the exchange's cryptocurrency services.
You can fund your crypto exchange account with fiat currency or by linking it to a bank account, e-wallet, or debit card. You can use this to purchase any cryptocurrency in your account.
Go to the market and search for the cryptocurrency you want to purchase, such as Bitcoin (BTC). Select it, then select Buy.
Include all relevant information, such as the purchase price and the method of payment. Examine the transaction and give your approval. Then you're finished.
Best Bitcoin Wallets for Norwegian Customers
A crypto wallet may be required when purchasing digital assets such as Bitcoin and storing the money in a secure location. It is strongly recommended that more secure asset protection, preferably a hardware wallet, be used. These are some of the best Bitcoin and cryptocurrency wallets available right now.
- Coinbase is the best and easiest-to-use cryptocurrency and NFT wallet for mobile devices (iOS and Android). Using the app, you can easily buy, sell, and take possession of your own property. There are also almost no ongoing maintenance costs.
- The $150 Ledger Nano X is currently one of the most advanced hardware wallets available. In addition to supporting a large number of cryptocurrencies, including Bitcoin, the highest level of security is provided. Simply plugging your wallet into your computer via a USB connection allows you to manage it easily.
Frequently Asked Questions
Buying cryptocurrencies with a credit card is possible if you use the right cryptocurrency exchange and the right credit card. Only a few credit card companies allow the purchase of cryptographic assets, so make sure before you buy. Next, look for a cryptocurrency exchange that accepts credit cards as payment. Bitpanda and Coinbase are two Norwegian cryptocurrency exchanges that allow this.
To buy crypto using your payment card, you must link your credit card to your cryptocurrency exchange account. Then, simply follow the instructions in this article to learn on how to purchase cryptocurrencies in an exchange.