Crypto firms in Norway’s wealth fund face ethics probe in 2025: report

The ethics council of Norway’s sovereign wealth fund will reportedly conduct investigations into crypto and gambling firms listed in the fund’s portfolio, including Binance and Marathon Digital, due to money laundering risks.

Crypto firms are among companies listed in the Norwegian sovereign wealth fund that are subject to an investigation by the fund’s ethics council, according to an exclusive Reuters report. The Norwegian sovereign wealth fund is the largest sovereign wealth fund in the world, with investments of $1.8 trillion. It owns 1.5% of the publicly traded shares of 8,700 companies around the world.

This year the fund will invest in Coinbase, Block Inc. and increased its holdings on crypto exchanges, including Marathon Digital. Specifically, the fund owns a 0.83% stake in Coinbase, which is worth approximately $453 million.

“In 2025, the Ethics Council will examine more closely companies dealing with cryptocurrencies and gambling/casinos where there is a significant risk of money laundering,” the council said in the draft document submitted to the country’s finance ministry.

Gambling companies in which the fund invests are also under scrutiny due to their high risk of money laundering.

The Norwegian sovereign wealth fund’s Ethics Council has been tasked with investigating companies in which the fund invests to ensure they operate in a commercially reputable manner. Otherwise, the council will recommend withdrawing funding from these companies or placing them on a public watch list.

So far, Norway’s sovereign wealth fund has expelled 189 companies for ethical violations, including aircraft manufacturing companies Airbus and Boeing, which produce nuclear weapons, as well as Glencore and RWE, which produce coal or coal-based energy.

Other reasons why the fund decided to separate from companies include human rights violations, environmental damage, corruption and tobacco and marijuana production.

The council will also investigate shoe manufacturers such as Nike, Adidas, Asics and Puma for potential violations of inhumane working conditions, ranging from long hours and low wages to workers’ inability to form unions.

Even if the crypto companies listed in the fund are found not to have violated any anti-money laundering standards, these firms could well be prosecuted for environmental harm. In April, Norwegian regulators introduced a new framework to crack down on crypto mining with the aim of limiting or eliminating crypto mining in the country.

Norwegian ministers have expressed concerns about the environmental impacts of crypto mining, arguing that greenhouse gas emissions are incompatible with Norway’s sustainability goals.