There are many industries that can be explored in Norway
, apart from the traditional ones. Among them, IT and digital technologies have become quite popular among the new generation of entrepreneurs. Now, it is possible to launch Initial Coin Offerings or ICOs in Norway
, thanks to several projects involving the Central Bank.
If you want to invest by opening an Initial Coin Offering in Norway
, our local specialists can help you. We are at your disposal with company formation services in Norway
in its most prolific industries.
What is Norway’s approach on virtual money?
During the pandemic, many Norwegian citizens have sought alternative investment assets, which led to many of them choosing to buy cryptocurrencies. The Norwegian government had already set the scene for the fintech sector in 2018 when it signed the European Blockchain Partnership in order to digitize its services to the population.
With only 3 to 4% of the population still using cash in most of the transactions, setting up businesses that rely on cryptocurrencies is a good idea, and a Norwegian ICO is a successful one.
As a definition, an ICO is an initial public offering (IPO) that relies on blockchain technology instead of the traditional trading platforms.
In order to create an ICO in Norway
, one must first register a company with the Trade Register
. Our company registration advisors in Norway
can help you with the entire procedure.
Special regulations applicable to ICOs in Norway
In order to create an Initial Coin Offering in Norway, after the registering the company, it is necessary to draft a prospectus, in accordance with EU regulations, even if it is not a member of the European Union. However, there are numerous EU companies and private citizens operating, respectively living in Norway, hence the integration of certain rules in the national legislation. Moreover, starting with 2019, Norway had issued its own Securities Trading Law which covers cryptocurrencies as financial instruments.
Here are the main aspects when seeking to launch an ICO in Norway:
- apart from drafting a prospectus, the trading platform must also respect the 2018 Anti-Money Laundering Regulations;
- a new “fit and proper” test was introduced to those providing virtual exchange currency services in 2019, and it must be respected by those creating ICOs;
- at the moment, there is no need to obtain a license to trade cryptocurrencies, such is the case of IPOs;
- from a taxation point of view, virtual currencies are treated as assets, therefore, taxed accordingly.
The main authorities providing for the regulations and legislation applicable to virtual currencies treated as financial instruments are the Norwegian Central Bank
and the Financial Supervisory Authority.
Feel free to address our consultants
if you want to open a company in Norway
and want to use it to launch an Initial Coin Offering
Taxation of virtual currencies in Norway
As mentioned above, cryptocurrencies are treated as assets and will be taxed as it follows:
private individuals must pay the capital gains tax that is levied at the rate of 22%;
individuals may also pay the wealth tax when holding assets in the form of cryptocurrencies – the current rate of this levy is 0.85%;
companies must pay the corporate tax of 22% if their virtual currency-related operations are considered business activities;
the remote sale of virtual currencies is imposed the 0% VAT rate, while other activities are exempt from the VAT, just like other financial services;