Norway's finance minister warns against investing in Bitcoin

Source: Xinhua| 2017-12-22 00:15:32|Editor: yan
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OSLO, Dec. 21 (Xinhua) -- Norway's finance minister Siv Jensen thinks that there is a big risk in investing in Bitcoin and other cryptocurrencies, newspaper VG reported Thursday.

"The big value fluctuations make it risky to place funds in private digital currencies. The risk is particularly high for investors with small financial buffers," Jensen said in a message to Norwegian Parliament.

The minister added that it was important that authorities from different countries cooperate in dealing with such currencies.

"Several central banks and supervisors have pointed out the risks associated with the purchase of Bitcoin," she said.

According to Jensen, there are challenges in the currencies being attractive to criminals for money laundering and tax evasion, while the system operation is very energy-intensive.

Both trade and investment with these currencies are little regulated, she pointed out.

At the same time, Jensen sees opportunities in using the blockchain technology that is behind the digital currency operations for services such as logistics.

"That makes it possible to make transactions without third parties in a new and efficient manner. I am looking forward to the opportunity to use this technology for more effective interaction," Jensen said.

She also explained that Bitcoin and other cryptocurrencies are regarded as property assets by the tax law and that the usual rules from the tax act shall be applied when dealing with cryptocurrencies.