Citizens of Norway are continually benefitting from the country’s pension fund’s currency investments and oil profits. The Norway pension fund invests in different asset classes funded by the surplus oil profits. The fund has an extensive portfolio of assets, mainly real estate and cryptocurrency. The country’s oldest pension fund, the Norwegian Oil fund, has some investments in Bitcoin which has benefitted the citizens, with at least $2 worth of the cryptocurrency.
Oldest Norway fund’s crypto investment grants every citizen Bitcoin
The Norwegian pension fund also has investments in various nation’s currencies like the US’s dollar and Euro. Despite having those assets in place, the oil fund also acquired some stakes in investment platforms like the popular MicroStrategy and other purely Bitcoin investment institutions sometime this year. The investment has resulted in the excellent news for Norwegians, where they automatically have investments in Bitcoin without doing anything.
When profits from the investments, the citizens will be entitled to a part. Additionally, when the volatility affects Bitcoin prices, they will equally gain from increases and lose from price fall. The unfortunate issue is that the citizens don’t have a wallet to use the cryptocurrency and would be deprived of the rights to access it directly.
Norway has been welcoming of crypto investments, and the country does not have stringent rules to discourage the use of digital assets. The country, however, has some regulations crypto-based businesses have to follow to reduce the currency used for malign and illicit purposes.
For example, the country adopted a rule for all digital assets companies to register with authorities put in place and required them to reduce the anonymity of the platform to prevent money laundering in the country. This process is understandable mainly because there is an alarming rate of hacking and other cybercrimes online requiring crypto as ransoms.
Norway’s stance on cryptocurrency
Interestingly, the country requires its citizens to pay tax on cryptocurrency owned just like in real estate. Everyone in the crypto business is required to pay taxes, both the miners and traders. Two years ago, there was a subsidy to help them reduce taxation. Unfortunately, the subsidy was reportedly removed by the country, leading to an unexpected increase in taxes on crypto. Sources claim the removal was caused by specific claims that suggested the mining business was damaging the ecosystem, which might have led to the government’s decision.
Even though taxation might have displeased the citizens that did not stop them from investing more into the cryptocurrency, traders and miners from all around the world are fighting against all odds and some legislation that might reduce their take in the blockchain technology. Just last week, the G7 came together to support a notion of creating a regulatory framework for the platform to prevent it from being used for damaging reasons.
Despite the excellent reason behind the necessary regulation, people are afraid of the State claiming power over the currency, which is supposed to be solely controlled by the owner. The crypto space is also optimistic that the new regulations might help strengthen the adoption of the technology.