Denmark Investigates Tax Burden of 2,700 Bitcoin Traders

Denmark Investigates Tax Burden of 2,700 Bitcoin Traders

The Danish Tax Agency is now looking into the activity of 2,700 Danes that have traded BTC on a Finnish exchange, according to a press release by Skatte Styrelsen. The Nordic countries have a long history of cooperation and exchange of financial information about their citizens.

At this moment, the only information available is that these individuals have made purchases totaling 49.7 million kronor ($7.55M) and sold about 53 million kronor in BTC ($8.05M).

“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.

According to the Agency, it’s already taken the time to contact a few of the citizens involved.

Though the sums involved overall are large, individual trades were much smaller, with the majority of them falling below 10,000 kronor ($1,500). A smaller group of these citizens, however, have made high-value exchanges within the range of 10,000 and 1,000,000 kronor ($1,500-$150,000).

The Agency also admits that there are some who have still not sold their BTC, meaning that they have not yet made any gains or losses on their activity.

“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,” Bergen added.