Core Insights - Norway has seen a significant increase in cryptocurrency tax declarations, with over 73,000 individuals reporting digital asset holdings in their 2024 tax returns, marking a 30% rise from the previous year, the largest year-on-year increase since records began [1] - The total declared value of cryptocurrency holdings has more than doubled to NOK 40.3 billion ($3.9 billion), the highest figure ever reported [1] Group 1: Tax Compliance and Measures - The increase in declarations reflects the success of measures aimed at encouraging voluntary compliance, as stated by Tax Director Nina Schanke Funnemark [2] - In 2019, fewer than 10,000 Norwegians reported owning crypto assets, which has now grown more than sevenfold [2] Group 2: Market Influences - The rise in declarations is also attributed to the tax agency sending digital reminders to taxpayers who may own crypto but failed to declare them [3] - The data reflects rising market prices throughout 2024, significantly boosting the total declared value of digital holdings, with crypto gains reaching NOK 5.5 billion and reported losses totaling NOK 2.9 billion [3] Group 3: Taxation Framework - Under Norwegian law, cryptocurrency is classified as a capital asset, subjecting profits and losses from trading to capital gains tax at a flat rate of 22% [4] - The First-In, First-Out (FIFO) method is used to calculate the cost basis of crypto sales, and crypto holders must declare their digital assets as part of their net wealth each year [6] - Wealth above NOK 1.7 million is subject to Norway's wealth tax, with rates varying based on income and municipality [6]