The ethics council of Norway’s sovereign wealth fund is set to investigate cryptocurrency and gambling companies in its investment portfolio for potential money laundering risks, including firms like Binance and Marathon Digital.

As reported exclusively by Reuters, cryptocurrency firms are among those being examined by the fund’s ethics council. The Norwegian sovereign wealth fund, boasting $1.8 trillion in assets, is the largest of its kind globally and holds 1.5% of listed shares in approximately 8,700 companies worldwide.

This year, the fund has increased its investments in cryptocurrency exchanges, including Coinbase, Block Inc., and Marathon Digital. Notably, it holds a 0.83% stake in Coinbase, valued at around $453 million.

According to a draft document submitted to the country’s finance ministry, “The Council on Ethics in 2025 will focus on companies engaged in cryptocurrencies and gambling/casino operations, where there is a notable risk of money laundering.”

The gambling firms in which the fund has invested are also facing scrutiny due to significant money laundering risks.

The Council of Ethics for Norway’s sovereign wealth fund is responsible for examining the companies it invests in to ensure they adhere to ethical business practices. Should any company fail to meet these standards, the council may recommend divesting or placing the company on a public watch list.

To date, the Norwegian sovereign wealth fund has excluded 189 companies over ethical concerns, including aircraft manufacturers Airbus and Boeing for their involvement in nuclear weapons, as well as Glencore and RWE for coal production.

Additional factors prompting potential divestment may include human rights violations, environmental harm, corruption, and the production of tobacco and cannabis.

The council will also investigate footwear manufacturers like Nike, Adidas, Asics, and Puma for possible violations relating to inhumane working conditions, such as excessive hours, inadequate wages, and restrictions on workers forming unions.

Even if the identified cryptocurrency firms do not breach money laundering regulations, they could still face challenges over environmental issues. In April, Norwegian authorities introduced a regulatory framework aimed at restricting crypto mining to minimize or eliminate it within the country.

Norwegian officials have expressed concerns regarding the environmental consequences of crypto mining, highlighting its greenhouse gas emissions as being at odds with Norway’s sustainability objectives.