Tax agency got access to the Danish cryptocurrency exchanges
For the first time, the Danish tax agency, Skattestyrelsen, have announced they are receiving access to three cryptocurrency exchanges, specifically in order to receive their tax information, and to begin investigating if Danish citizens who have used these platforms have paid taxes.
The names of these exchanges haven’t been released to the public; however, these exchanges will have to give Skattestyrelsen the access to the following: all transaction data from Jan. 2016 to Dec. 2018, along with the client names, addresses and tax numbers.
Skattestyrelsen’s Director, Karin Bergin, said the new policy will create the opportunity to find ways to regulate cryptocurrency. She also said that she believes cryptocurrency is something that the Danish government needs to watch closer.
The Danish government isn’t a stranger to a relationship with the blockchain technology. In 2017, the government announced they had plans to use this technology to help push forward human rights. The Danish Ministry of Foreign Affairs released a statement that blockchain technology could be implemented to create a faster, more efficient way of transferring money to places in the world that are considered “trouble hot spots.”
However, in early 2018, the Danish Bank declared they do not support cryptocurrency in any form and strongly urge their customers don’t invest in crypto or use exchange platforms. The Danish central bank believes that cryptocurrency “can be a tool for crimes.”
Notably, a number of European countries have started regulating cryptocurrency more actively from the taxation standpoint. For instance, back in October 2018, Spain has released a new set of laws requiring Spanish citizens to disclose their crypto assets and earnings when filing taxes, no matter if they store them in the country or offshore.