Bitcoin Traders Will Have to Cover Unpaid Taxes for Crypto in Denmark, According to Regulators
As regulations continue to find their place in cryptocurrency, tax laws are a major point of conversation. In Denmark, the Tax Authority received the authorization it needed from the Tax Council in Denmark to examine three domestic crypto exchanges for their trading of crypto.
This approval means that the exchange now has a legal obligation to provide trading information that includes identifying details about the traders, like their name, address, and personal tax numbers. The details will also need to include information about the trading that took place on the platforms from the beginning of 2016 to the end of 2018.
Reported by TheNextWeb, the statement from the agency indicated that the Tax Authority had never been given this permission before now. Karin Bergen, the personal tax director, said in the statement,
“With the permission of the Danish Tax Council, we will, for the first time, gain access to the trades made via the Danish stock exchanges. This gives us completely new opportunities in relation to control in the area. Without going too far, I think one can say that this is a big market that we need to look at more closely.”
So far, the agency has already taken the time to reach out to the exchanges, and the progress so far indicates that the decision on how exactly to tax these transactions should happen by summertime.
TheNextWeb noted that Danish tax authorities were originally tipped off by the Finnish tax authority in December, when they were told that about 2,700 Danes were trading without declaration of profits or loss on unnamed Finnish exchanges. The estimates indicate that trading added up to $15 million (100 million DKK).
Other countries have held a similar evaluation, as the IRS decided to require Coinbase to hand over information to protect the government from traders who attempt to evade tax payments.