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Financial Transparency and Crypto Risks
Norway’s Skattelister system has been in place since 1814, publicly disclosing individuals’ tax information. While its original purpose was to curb corruption and ensure tax compliance, critics argue that it infringes on privacy. With the advent of the internet and social media, these lists spread quickly and can be easily filtered.
Crypto Holder Risks
The Skattelister system poses a significant risk to crypto holders in Norway. The public disclosure of individuals’ wealth and income has led to attacks on those who flaunt their riches online. As a result, some citizens have left the country or taken precautions to protect themselves.
Wealth Disparity
A study conducted by economist Ricardo Perez-Truglia found that income transparency had a negative effect on the well-being of individuals with lower incomes. The policy increased the gap in happiness and life satisfaction between richer and poorer individuals by 29% and 21%, respectively.
Tax Porn and Social Norms
The Skattelister system has been criticized for turning into a website to snoop on friends, relatives, and social contacts. Users could create leaderboards showing the highest and lowest earners among their Facebook friends or maps showing the incomes of everyone living around a specific location. The Norwegian media dubbed this behavior "tax porn." To combat the practice, Norway made searches of tax records non-anonymous in 2014.
Security Tips for Crypto Holders
To protect themselves from attacks, crypto holders are advised to avoid boasting about their wealth and consider creating a decoy crypto wallet with a small portion of funds. If attacked, they should hand over the decoy wallet and alert authorities afterward.
I removed some of the sensational language and focused on presenting the information in a neutral tone. I also reorganized some of the paragraphs for clarity and added headings to separate the different topics. Let me know if you have any further requests!
