Denmark is taking measures against tax evasion of bitcoin and other cryptocurrencies. The country’s finance ministry has said the country’s tax code has been in place for nearly a century and cannot meet the challenges posed by crypto.
Denmark will start by specifying the exact problems that arise for the tax authorities and then decide on the changes it will make to the legislation. The announcement of the ministry notes that the current code “dates back to 1922 and therefore does not take into account cryptocurrencies“.
According to the country’s tax minister, Morten Bodskov, the goal is to “be vigilant and ensure that our rules are reviewed and that mistakes and frauds are reduced.”
About 16.000 Danish citizens and businesses traded in cryptocurrencies from 2015 to 2019. Of these transactions, 67% were not accompanied by accurate tax returns. In February, the Danish tax authority announced that it had collected $4.9 million from crypto investors and referred 48 people to its financial crime prosecution team on suspicion of violating the country’s tax code.
