POL (ex-MATIC) (pol) 
Norway’s Sovereign Wealth Fund Investigates Crypto Firms Over Money Laundering Risks
Norway’s sovereign wealth fund, the largest in the world, is conducting an investigation into cryptocurrency firms listed in its portfolio. The fund’s ethics council is scrutinizing these companies, including Binance and Marathon Digital, due to concerns over money laundering risks.
The investigation, as stated in a drafted document filed to the country’s finance ministry, aims to examine companies involved in cryptocurrencies and gambling, where there is a significant risk of money laundering. The council’s primary goal is to ensure that these companies operate responsibly and ethically.
Background on Norway’s Sovereign Wealth Fund
The Norwegian sovereign wealth fund has $1.8 trillion in investments and owns 1.5% of listed shares in 8,700 companies globally. This year, the fund has increased its holdings in crypto exchanges, including Coinbase, Block Inc., and Marathon Digital. Notably, the fund owns a 0.83% stake in Coinbase, worth around $453 million.
Investigations and Exclusions
The Council on Ethics is responsible for probing companies the fund has invested in to ensure they operate respectfully from a business standpoint. If any company is found to have violated ethical standards, the council will recommend the fund to divest from that company or place it on a public watch list. So far, the fund has excluded 189 companies due to ethical violations, including:
- Aircraft manufacturing companies Airbus and Boeing for creating nuclear weapons
- Glencore and RWE for producing coal or coal-based energy
Other reasons for exclusion include human rights violations, environmental damage, corruption, and the production of tobacco and cannabis.
Environmental Concerns and Crypto Mining
Even if the crypto firms listed in the fund aren’t found to have violated any money-laundering standards, they may still face scrutiny over environmental damage. In April, Norwegian regulators introduced a new framework to limit or eliminate crypto mining in the nation due to concerns over greenhouse gas emissions. The country’s ministers have voiced concerns about the environmental impact of crypto mining, citing its incompatibility with Norway’s sustainability goals.
Tips for Investors
When investing in cryptocurrencies or companies involved in crypto-related activities, it’s essential to consider the following:
- Research the company’s environmental policies and practices
- Understand the regulatory landscape and potential risks
- Monitor the company’s compliance with anti-money laundering standards
Stay informed about the latest developments in the world of cryptocurrencies and finance by following Global Crypto News. Stay ahead of the curve with the latest news and updates on web3 and cryptocurrency markets.
