Norway’s sovereign wealth fund is set to examine the risks of money laundering associated with the cryptocurrency and gambling industries, as reported by Reuters.
This inquiry will be overseen by the Council on Ethics, which is the ethical authority for Norway’s Government Pension Fund, and the evaluation is scheduled for 2025. Reuters disclosed this after reviewing a document from the Council that verifies this plan.
“In 2025, the Council on Ethics will closely evaluate companies involved in cryptocurrencies and gambling/casinos, given the significant potential for money laundering,” noted the document highlighted by Reuters.
The fund has stakes in Coinbase, the third-largest cryptocurrency exchange globally, following Bybit and Binance. It also invests in Flutter Entertainment, the leading online betting operator in the world, and MGM Resorts, a notable casino operator in the United States.
The gambling and cryptocurrency sectors are often linked with increased money laundering risks. The large amount of money—whether tangible or digital—circulating through casinos and online betting sites frequently attracts the scrutiny of regulatory bodies.
Likewise, the cryptocurrency realm has consistently faced money laundering accusations, compounded by the decentralized nature of digital currencies and the immense volume of transactions. Despite these issues, the crypto industry has experienced substantial growth, especially amid recent regulatory and political shifts in the U.S.
In Norway, about 14% of men reportedly possess cryptocurrency, as per figures from EY. The nation is also known as one of the most welcoming to cryptocurrency, according to Coincub, alongside other European countries like Germany and France.
Even so, cryptocurrency and gambling continue to be critical areas of concern for financial regulators and law enforcement globally. Nations such as Australia and Malta—a key center for gambling and financial activities—have pinpointed these industries as typical channels for money laundering by criminal groups.
Back in 2019, the Norwegian government instructed Kommunal Landspensjonskasse (KLP), the largest mutual pension provider in Norway, to cease all investments in the gambling and fossil fuel sectors. Although KLP is a private entity, the government intervened to align its $100 billion pension portfolio with strategies for ethical divestment.