Denmark and Bulgaria To Inspect Crypto Traders

Maja Mazur
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Two new countries – Denmark and Bulgaria – recently have announced that they will pay more attention to crypto transactions.

It is supposed to help verify if cryptocurrency traders pay the required taxes.

Taxation in the cryptocurrency field is always a highly discussed issue. Some countries already have clear lawful regulations concerning tax payments for people that trade cryptos. But not all of them do. Some governments are still working on the rules that would set the taxation straight. Today, we hear about two new ideas from two different sides of Europe.

Denmark – looking into transactions

Yesterday, Skattestyrelsen, Danish Tax Agency, announced that soon the country’s Tax Council will be authorized to analyse cryptocurrency traders’ financial information. It concerns transactions made on three of the most popular Danish exchanges between the beginning of 2016 up until December 31, 2018.

From now on, these platforms will have to provide data about all cryptocurrency transactions made by their users during this period. They will also be obliged to include other information, like names, addresses, CPR numbers, and the personal ID numbers from the Danish Civil Registration System. It has been stressed that this is  the very first time when the Council has been granted this kind of information.

Bulgaria – controls of the exchanges

In the meantime, in the Eastern Europe, Bulgaria also prepares its new rules as it has been reported by the local media outlet, The Sofia Globe. The Bulgarian National Revenue Agency is working on some inspections to make sure that the trading platforms operating in the country fulfill security laws and tax obligations.

The plan is to control companies and entities that have declared the cryptocurrency trading as their main business activity and source of income. The main worry of the Bulgarian government is that such businesses offer an anonymous exchange of virtual money, which can be used for illegal transactions. The National Revenue Agency has already taken actions to prevent these kinds of activities. For now, the agency will try to inspect the way cryptocurrency trading platforms operate in order to collect information about their real income. Later, it will be verified if the taxation is regulated accordingly.

Just to be sure

We all know that digital asset sector is always considered a financial grey area. It’s often not true, but some kind of regulations obviously have to be made, nonetheless. Maybe now, when everything is rightfully inspected, people will gain more trust towards the cryptocurrencies.

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