The ethics council of Norway’s sovereign wealth fund is reportedly set to investigate crypto and gambling companies within its portfolio, including Binance and Marathon Digital, due to potential money laundering concerns.
As per an exclusive Reuters report, cryptocurrency firms are among the entities that the Norwegian sovereign wealth fund’s ethics council will scrutinize. This fund is the world’s largest sovereign wealth fund, boasting $1.8 trillion in investments and holding 1.5% of publicly listed shares in 8,700 companies worldwide.
In 2023, the fund has increased its investments in various crypto exchanges, including Coinbase, Block Inc., and Marathon Digital. Specifically, the fund owns a 0.83% stake in Coinbase, valued at approximately $453 million.
According to a draft document submitted to the country’s finance ministry, “The Council on Ethics in 2025 will thoroughly investigate companies involved in cryptocurrencies and gambling/casino due to significant money laundering risks.”
The gambling companies in which the fund has invested are also under review due to high risks for money laundering activities.
The Council of Ethics for Norway’s sovereign wealth fund is responsible for examining the companies within its investment portfolio to ensure they operate ethically. If a company is found lacking in this regard, the council may recommend divestment or placement on a public watch list.
To date, Norway’s sovereign wealth fund has excluded 189 companies for ethical infractions, including aerospace manufacturers Airbus and Boeing for their involvement in nuclear weapons production, as well as Glencore and RWE for their coal-related activities.
Other grounds for potential divestment might include human rights transgressions, environmental harm, corruption, and the production of tobacco and cannabis.
The council will also assess footwear manufacturers such as Nike, Adidas, Asics, and Puma for possible violations related to poor working conditions, including long hours, low wages, and restrictions on workers’ rights to unionize.
Even if the crypto companies in the fund are not found to have breached any money laundering standards, they could face scrutiny for environmental impacts. In April, Norwegian regulators unveiled a new framework aimed at restricting cryptocurrency mining in efforts to mitigate or eliminate its presence in the country.
Norway’s ministers have expressed concerns about the environmental implications of crypto mining, highlighting its greenhouse gas emissions as being at odds with Norway’s sustainability objectives.
