Development & maintenance of big data centers capable of processing large volumes of data remains the number one priority for all sectors of Norwegian economy, especially for those of them that rely heavily on modern technological advancements (e.g. AI, machine learning, robotics, virtual & augmented reality). It’s hardly a surprise then that increasingly more Norwegian entrepreneurs are thinking about registering a digital enterprise in Norway.
Digital businesses in Norway are being set up not only in high-tech sectors but also in those of them that specialize in the provision of financial services in Norway. The entry of large multinational corporations (especially in digital payments) has increased competition & caused local businesses to increasingly consolidate. The recent spate of mergers & acquisitions in Norway (such as the one between BankID, BankAxept & VIPPS) is yet another proof of that trend.
Regulatory Framework
Being an EEA member, Norway has pledged to bring its legislation in conformity with EU rules & regulations. In particular, it has amended the Copyright Law, Personal Data Protection Law, Marketing Control Act & Unmanned Vehicles Act .
The country’s government has also amended the E-Communication Law to make it more in line with EU legislation relating to e-communication & Internet access.
Regulatory Authorities
There’s no special government agencies charged with regulating Norway’s digital business. That said, engaging in this line of business requires authorization of certain Norwegian regulators that are authorized to:
- impose fines & sanctions for violation of current legislation;
- require businesses to disclose information;
- resort to punitive actions;
- render enforceable decisions.
The regulatory approach taken to digital business by the Norwegian government, including its policy, are impacted by the corresponding EU initiatives. A strategy approved by the Norwegian government sheds light on upcoming regulatory reforms & places emphasis on governance & health legislation.
E-Payment Systems
Regulation of e-payment systems in Norway is done in accordance with
- PSA;
- FCA;
- FIA.
They establish rules & restrictions related to organization & provision of e-payment services in the Kingdom of Norway.
Providing payment services in Norway is the exclusive prerogative of banking & other financial institutions. Using e-payment systems in Norway requires compliance with the provisions of the Financial Contracts Act.
Virtual Currencies
Because virtual currencies in the Kingdom of Norway are deemed assets, profits derived from their sale are taxed as per corresponding rules relating to selling assets in the Kingdom of Norway. Virtual currencies aren’t deemed “financial instruments” and, therefore, aren’t regulated by laws applicable to common financial instruments.
However, the STA may apply if virtual currencies issued by private companies entitle their owners to an ownership interest in the company or if derivatives traded publicly make use of virtual currencies as fixed assets.
Conclusion
And that wraps up our short review of Norway’s digital business scene. Should you have any questions regarding the topic of our review or seek to register a company in the Kingdom of Norway or elsewhere in the world, do not hesitate to contact IQ Decision UK. Our legal experts will do their best to ensure your full compliance with the local legislation.
