Norway’s sovereign wealth fund is going to investigate companies involved in the crypto and gambling sectors for any signs of potential money laundering, according to Reuters.
The business news outlet reports that Government Pension Fund of Norway’s Council of Ethics, its business ethics watchdog, will conduct the investigation in 2025. Reuters claims to have seen a Council document confirming this.
“The Council on Ethics in 2025 will take a closer look at companies involved in cryptocurrencies and gambling/casino, where there is a significant risk of money laundering,” the Council on Ethics document read, said Reuters.
The fund is notably an investor in Coinbase, the third largest crypto exchange in the world after Bybit and Binance, as well as Flutter Entertainment, the world’s largest online betting operator, with a plethora of notable brands, along with MGM Resorts, a legacy US casino company.
As high-risk industries, betting firms and cryptocurrency firms often face investigations around money laundering. The high volumes of cash, both physical and digital, which pass through casino floors and online betting platforms means regulators often keep a close eye on these sectors.
Crypto, meanwhile, is no stranger to allegations of money laundering, again due to the high volumes behind it but also due to its decentralised nature. This has not stopped the sector’s value and engagement from rising significantly in recent years, buoyed particularly by regulatory and political developments in the US.
In Norway, 14% of all Norwegian men own crypto according to data from EY. The country has also ranked as one of the most crypto friendly countries by Coincub, a crypto analysis company, alongside other European nations like Germany and France.
Nonetheless, crypto and gambling remain high on the agenda for many country’s financial regulators and crime agencies. Both Australia and Malta, the latter a major gambling and finance jurisdiction, have highlighted cryptocurrency and gambling as common money laundering methods used by criminals.
Meanwhile, the UN has earmarked both as a concern in Southeast Asia. Jeremy Douglas, UNODC Regional Representative for Southeast Asia and the Pacific, said that casinos “have been vehicles for underground banking and money laundering for years, but the explosion of underregulated online gambling platforms and crypto exchanges has changed the game”.
Regarding the developments in Norway, Reuters approached Coinbase, Flutter and MGM for comment but has not received a statement. Payment Expert has also approached Coinbase and the Nordic Blockchain Association.
