The Danish Tax Agency Crosschecking Bitcoin Activities of 2,700 Individuals, Crypto Activity Pick up in China


Denmark Tax

In a press release, The Danish Tax Agency is crosschecking cryptocurrency related activities of 2,700 Danes that transacted via a Finnish crypto exchange. Like most countries across Europe and the Nordic region, Denmark is open to cryptocurrencies and citizens who transact via Bitcoin are required to file taxes and pay for capital gains or losses every year. Filing taxes is arduous especially for active traders but Danes have a long history of cooperation and now the Danish Tax Agency which is under the Ministry of Taxation is determined to “identify individual citizens and gather new information on those in their records”.

“Right now, we are identifying the individual citizens and gathering new information on those we already have [in our records]. If something doesn’t match, we will contact them and ask for more information. However, the number of people involved and what it may mean, it is still too early to say,” said Karin Bergen, personal tax director for the Tax Agency”

Denmark and much of the Nordic economy depend on levies and duties to bankroll the public sector—estimated to be around DKK 1,000 billion. For efficiency, proper tax systems and administration is crucial for execution. It is because of this that the country has “solid tax rules” that guarantees steady collection of revenue financing what the Danish Tax Agency refers to as “the foundation of the public service of the Danish State, regions and municipalities”.

“This is probably just the tip of the iceberg. Although [the Finnish exchange] is a relatively small Bitcoin exchange, the information is a very valuable source, which clearly shows trends and patterns in the area. The knowledge we gain about data mining, segments and methods in general will make us wiser in the area and bring benefits to our work in guidance and inspection”

So far, the agency has contacted some individuals involved but admitted that that majority made small purchases below $1,500 with some pushing theirs within the $1,500–$150,000 range while some are yet to sell their Bitcoins meaning they only have paper gains or losses.

Coinciding with this are new revelations that the number of Chinese citizens using crypto-related apps is upwards of 7.5 million. This is despite the continued heavy handedness of the Chinese governments towards crypto and ICOs. Representatives of the country’s central bank maintain that security tokens are illegal financial activities and ICOs, in particular, are funnels for all kind of illegal activities and fraud. The 7.5 million usage is a 230 percent jump from that recorded in Sep 2017 right when the Chinese government began “cleaning up” on Bitcoin and ICOs.