Follow us @crypto for our full protection.
Denmark is cracking down on crypto merchants after discovering that two-thirds of native transactions made utilizing Bitcoin and different cryptocurrencies aren’t correctly taxed.
The nation’s current tax code, which is roughly a century outdated, isn’t designed to cope with the challenges posed by crypto belongings, the Danish tax ministry stated on Tuesday. It cited a heightened threat of fraud in addition to widespread errors in filings.
Denmark will begin by defining the particular challenges that cryptocurrencies pose to taxation authorities, after which determine what to vary within the laws. In its assertion, the ministry famous that the present code “dates again to 1922 and due to this fact doesn’t take monetary cryptocurrencies into consideration.”
Morten Bodskov, the nation’s tax minister, stated the purpose is to be “vigilant and make sure that our guidelines are up-to-date and restrict errors and fraud.”
Between 2015 and 2019, about 16,000 individuals and firms in Denmark traded cryptocurrencies. Of these transactions, 67% weren’t accompanied by an correct tax submitting. In February, the Danish Tax Company stated it had collected $4.9 million from crypto traders and reported 48 individuals to its crimes unit, based mostly on a suspicion that they’d violated the nation’s tax code.