Denmark’s Tax Agency To Collect Customer Details From Local Crypto Exchangesbr>
Denmark’s Tax Council has authorized Skattestyrelsen, the country’s tax agency, to obtain information on trading in cryptocurrencies via three Danish crypto exchanges.
In its announcement, Skattestyrelsen said the three unnamed exchanges must provide information about cryptocurrency trade conducted between January 1, 2016 and December 31, 2018. The agency will require identifying information about each of their users, including names, addresses, and tax ID numbers.
“With the permission of the Danish Tax Council, we will for the first time gain access to the trades made via Danish exchanges,” said Karin Bergen, the Tax Agency’s director of personal income tax. “This gives us new opportunities with respect to exerting control in the field.”
Last month, the tax agency accelerated crackdown against a large number of individuals who secretly traded bitcoin on a Finnish crypto exchange. According to the agency, a total of 2,700 Danish citizens purchased $5.80 million worth of bitcoins from the exchange between 2015 and 2017, but sold them back for $6.1 million in local currency.
“Without going too far, I think one can say this is a big market that we need to look into,” Bergen said. “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. However, it’s still too early to tell how many traders are out there and how much money has been traded.”
Once the data is received, the tax agency said that it will adjust the tax base for each trader before the summer. The agency also plans to share information about crypto transactions made by foreign citizens and companies in Denmark with tax authorities in the respective countries.
Currently, Denmark doesn’t recognize cryptocurrencies as legal tender and as a result, this makes them exempt from regulations. According to a survey conducted last month by the country’s National Tax Board, roughly 450,000 of its 5.7 million citizens have considered shopping with cryptocurrency.