Crypto Trader From Sweden Paid Million USD In Taxes

Investing, News, Regulation | February 23, 2019 By:

Cryptocurrency markets and their users are becoming regulated more and more heavily by their respective governments as well as the international legislative bodies. Some countries are applying their regulatory powers in a mild fashion, while others are taking a more radical route. Places like China and South America being some of the least crypto-friendly places on Earth. This has a lot of people concerned whether this level of involvement is undermining the very purpose with which cryptocurrencies were created.

Others are not so pessimistic.

According to Nyecasino.casino, many traders, market analysts and providers view most of these processes as natural. They say that this development was to be expected from the start. In order for cryptocurrencies and blockchain technology to find their legitimate place in the World, they need to find a way to seamlessly integrate into society’s processes and rules. Rules, that while often constrictive, are also used to prevent fraud, protect people and provide a higher degree of transparency to an emerging market like this one.

An impossible fine to pay

However, one trader learned the hard way what can happen when the system turns abusive. According to Swedish media sources, a local cryptocurrency investor will be handed a tax bill from the authorities that equates to 300% of all the profits he’s made with crypto.  The investor in question, who was identified as Linus Dunker, says he will be handed a 1 million USD bill from the government. Dunker reportedly traded 2.9 million USD worth of crypto in the last 5 years performing tens of thousands of transactions.

He claims the tax bill will be equal to three times the money he made during his years as a cryptocurrency trader. He says this is the result of not reporting the price he paid for crypto.

The money Dunker claims to owe the local regulator will equate approximately 8 million Swedish Kroner. The tax will be a fine for thousands of purchases he made since 2014 without reporting them.

The investor says that Sweden’s regulatory agency will fine him at a zero-cost basis as a business entity, which will double his tax obligations. This will happen because he failed to indicate the prices paid for the tokens he bought over the years. Dunker fears the agency isn’t doing what it should be and is encouraging people to hide their activities in fear of insurmountable taxation instead of coming forward to help shape the new industry into a legitimate entity in the modern World.

“I will pay 300 percent of the profit instead of 30 percent. It should not be legal,”

Dunker also claims that the officers of the regulatory agency visited him, dug around and wrote down everything the man owned, including his car, summer cottage, TV, dog’s name etc. The trader is not sure what he’ll do. Reportedly, he contacted the tax agency on his own accord, but couldn’t imagine that the fine applied to him would be that severe. He was trying to do the right thing by coming forward (source).

Authorities talk about the investigation

Henrik Kisterud, who works as Control Coordinator denies Dunker’s claims and says they’re not yet certain on the amount of money the man will be ordered to pay the government. However, they are certainly in the claims they’re making about the trader’s dealings. Authorities remain convinced that their dealings with people like Dunker will be fair and within the confines of the law.

“We should not go here and say that we are 100 percent safe. But we think we have a good basis in these investigations where we have made judgments about business activities.”

This story originally appeared at forexnewsnow.com