Denmark is forced to revise its tax legislation, which has existed for about 100 years, taking into account modern financial technologies. Speech, including, about cryptocurrencies.
The Danish tax office is concerned about the situation with digital currencies in the country. Its representatives said that they identified more than 16,000 individuals and legal entities involved in cryptocurrency trading from 2015 to 2019. The main problem was that 2/3 of these transactions, carried out over a long period of time, were not recorded in citizens' tax returns. Consequently, they violated a number of laws.
The head of the Danish Ministry of Taxes noted that the current legislation was adopted back in 1922. According to him, in those days, hardly anyone could allow the emergence of such financial instruments as cryptocurrencies. Therefore, taking into account digitalization, it should be “supplemented” or radically changed to meet today's realities.
Another reason for such radical proposals from the ministry was the desire to protect non-professional investors from false statements from various crypto companies and, in general, to reduce the scale of fraud associated with digital currencies in the country.
The Tax Law Council intends to submit its proposals for amendments to the current legislation by mid-2023. Since even several years will pass before this issue is considered, lawmakers today should think about what other ways of regulating the industry can protect newcomers to the crypto industry from possible financial mistakes.