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Denmark Tax Agency to gather information about bitcoin traders from Crypto Exchanges

Denmark Tax Council has approved Danish tax authority to collect data related to the users who are involved in cryptocurrency exchanges to know if they are paying right taxes. The cryptocurrency traders will be on watch by the tax authorities in and outside the country. The information related to foreign citizens and their assets will be exchanged with other countries.

Skattestyrelsen the Danish Agency official made its announcement on Monday stating that The Tax Council for the first time has given a green signal to access information about cryptocurrency traders, the information that may be collected by agency includes trade data, their names, central person registration number [CPR], person Id number which is granted by the Danish Civil Registration System and their addresses. The three domestic unknown crypto exchange should provide the trade data that took place between 1 January 2016 to 31 December 2018. The tax authorities further mentioned that it is for the first time that they are going to deal with such data.

The agency director Karin Bergen who is accountable for personal income tax collections stated that with the authorization by the Danish Tax Council we would be gaining access to all the trades related to cryptocurrency through the mode of Danish exchanges. This is a challenging opportunity that is given with due respect to operating control in this field.
The three domestic exchanges should now avail information related to all cryptocurrency purchase and sales that have been made by the users during the above stated period. Skattestyrelsen further said that they seek to gain information on all non-tax payers and companies that are dealing with digital currency transactions.

We are implementing this move because of the information that we received from the Finland tax authorities related to the Denmark traders. Karin Berge said this in an announcement we need not need to go too far regarding cryptocurrency; we believe that digital currency is a huge market that needs to be observed. The Finish bitcoin exchange contributed a small portion of information showing us the bigger picture, and now we have the greater opportunity to expose more of it.

According to a statement that was published last month, the tax agency mentioned that around 2700 Danish citizens had exchanged more than 100 million Danish krone which is approximately valued at $15.35 million cryptos between 2015 to 2017 as on the Finnish bitcoin exchange.

This is nothing but a small portion of the iceberg. The information shared by Finnish bitcoin exchanges is more valuable to us Bergen said.

Specifying the study that was researched by the National Tax Board in December 2018 said that around 450,000 Danish local citizens are involved in cryptocurrency shopping and only half of its citizens are mindful about the tax rules. The tax Agency further initiated a campaign to make aware about the tax rules among the local citizens that the crypto traders should pay the required amount of tax on the profit earned and the crypto traders can claim for a tax deduction on the losses incurred by them on cryptocurrency.

Sarah Picard
Sarah Picard is a part time contributor to CryptoWhile. She is pursuing her Journalism and mass communication degree. She has strong skill in curating and writing about crypto market. She is fascinated by blockchain and cryptocurrencies. In her free time, she researches extensively about cryptocurrency and it's use cases for public.

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