Denmark’s Tax Council recently authorized the country’s Tax Authority to acquire user data and transaction details from three cryptocurrency trading exchanges, according to a January 14 announcement on the agency’s official website.
As the government’s press release notes, the Danish Tax Authority received information from Finland’s tax officials last year, detailing Danish citizens’ trading activities on Finnish exchanges. At the time, reports suggested that as many as 2,700 Danish citizens had been trading on an exchange in Finland, without reporting profits and losses in their home country.
The three cryptocurrency exchanges will now be required to disclose the details of “all purchase and sales of crypto currencies made by their customers during the period from 1 January 2016 to 31 December 2018.” In addition, they must provide user identification information that includes customer names, addresses, and tax numbers.
Tax Authority director of personal income tax Karin Bergen highlighted the agency’s new opportunity to exercise more control in the crypto arena, adding:
“Without going too far, I think you can say that this is a big market that we need to look into. When we recently received information from the Finnish bitcoin exchange, it gave us a small tab of a larger picture, which we now have the opportunity to uncover even more of. However, how many traders it is about, or how much money has been traded, is still too early to tell about yet.”