In a report released on Thursday, Norges Bank, Norway’s central banking institution, recommended that the country develop a national crypto regulatory strategy.

The European Union’s Markets in Crypto Assets regulation (MiCA), which is about to take effect, has been a focus of attention for countries around the globe. The MiCA regulation may be applicable to the European Economic Area as a whole, but the central banks does not intend to stop there. They believe that it is necessary to develop more specific crypto regulations.

The collapse of stablecoin holder Terra, and crypto-exchange FTX have also prompted regulators to accelerate efforts to regulate this sector.

Pal Longva , Norges Bank’s Deputy Governor, said in a statement that the Norwegian authorities should evaluate whether they can move faster rather than waiting for international regulatory solutions. Norges Bank can make a contribution to these assessments and regulation that encourages responsible innovation.

MiCA is applicable to a wide range of service providers on the crypto market. It covers issues such as market abuse, consumer protection and market integrity, but it excludes “developments in financial decentralization, since the regulations’ primary focus is centered around centralised market participants,” according to the central bank.

Norges Bank believes that lawmakers should make use of existing regulations, such as those which address systemic risks and enforcement actions. The report called for the creation of crypto-specific laws.

The central bank also believes that there is a need to increase knowledge in Norway about exposure, attitudes, and applications of Crypto. Norges Bank is interested in increasing knowledge about this topic, according to the report.

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Nikhilesh De.