Tuesday, January 28, 2020

Danish Crypto Exchanges Now Requires To Release Traders’ Information For Tax Purposes

Elizabeth Jamie
Jamie Elizabeth is a Mass Communication Graduate from the Philippines, knowledgeable in the field of cryptocurrencies, blockchain etc., currently enjoying freelance writing, and able to write anything under the sun.

As the crypto space slowly aims its target for mainstream usage, governments around the world demand their shares.

Denmark’s Tax Charges With Crypto Exchanges

Added to this long list of countries now allowing the tax on cryptocurrencies is Denmark. According to the report, the Danish Tax Agency, Skattestyrelsen recently announced that they are now authorized by the Tax Council, Skatterådet, to require Danish crypto exchanges into releasing information about their traders.

As reported, three Danish crypto exchanges will be subjected to this plan. However, no specific company names were brought in by the media outlet. Still, the government requires them to list all the information of the traders that started transacting on Jan. 1, 2016 to Dec. 31, 2018.

“With the permission of the Danish Tax Council, we will for the first time gain access to the trades made via Danish exchanges. This gives us new opportunities with respect to exerting control in the field,” said Karin Bergen, the agency’s director.

Protecting Traders’ Personal Information

Skattestyrelsen stated that they would be careful about protecting the personal information of the traders since it is their first time handling these transactions. However, the agency also expects full cooperation from the crypto companies.

Initially, the agency requires the names, addresses, and CPR numbers — personal ID numbers issued by the Danish Civil Registration System — of the crypto traders.

Interestingly, even the foreign crypto traders are subjected to provide their information. This, according to the agency, will be used to monitor how many cryptos are being traded in the country and the fact that digital tokens are now allowed by the government for taxation.

Denmark Copies Finland In Taxation

“Without going too far, I think one can say this is a big market that we need to look into. When we recently received information from the Finnish bitcoin exchange, it gave us a small portion of the larger picture, which we now have the opportunity to uncover even more of,” explained Berger.

Some Finnish crypto exchanges inspired the said proposal since it was reported that over 2,700 Danish crypto traders were transacting in Finland. Meanwhile, krones worth more than $15 million were said to be traded in the country between 2015 and 2017. Thus, this information gives an idea for Danish government to control these massive amount of money.

The talks between the agency and the crypto exchanges are already moving. The tax agency promised that all the information would be treated and reviewed individually to determine how much tax will be subjected to the exchange.

“However, it’s still too early to tell how many traders are out there and how much money has been traded,” added by Berger.

Latest News

Bitcoin Eclipses $9,100, And Data Shows Institutions Are Only Just Getting Started

Bitcoin was one of the few assets heading higher this week as fears about the Coronavirus outbreak led a...

Cornerstone Joins Velocity Network Foundation to Shape the Future of Blockchain in HR

As a founding member, Cornerstone will collaborate with 14 other industry leaders to accelerate the development of a universal blockchain-powered network that will put...

Refundo Announces IRS and State Income Tax Refunds in Bitcoin Cash, Ethereum, and Ripple

KEARNY POINT, N.J.--(BUSINESS WIRE)--Refundo, a leading provider of tax-related financial products and services, is once again making federal and state tax refunds available in...

B2Broker Secures its Position as a PoP Liquidity Provider with Devexperts dxTrade

B2Broker’s customised version of Devexperts dxTrade combined with its technology and deep liquidity has culminated in an unmatchable offering in the industry. LIMASSOL, Cyprus--(BUSINESS WIRE)--#B2BX--B2Broker,...

$9,500 is Imminent For Bitcoin Despite 5% Intraday Gain: Here’s Why

Bitcoin gained bullish momentum above the key $8,800 resistance. As a result, BTC price surpassed $9,000 and it seems like the bulls are now...
- Advertisement -