Tax Letters Sent Out To Crypto Tax Avoiders In Denmark

Denmark’s tax agency, known as Skattestyrelsen has just recently issued multiple warning letters to “20,000 cryptocurrency tax avoiders.”

The move comes just a few months following regulators who were attempting to get information on crypto investors by snooping around several crypto platforms. 

So it seems, regulators in Denmark are looking at crypto traders in a crackdown on the tax avoiders.

Robin Singh, Koinly Founder has said:

“The letters are not exactly a shock as the Danish tax authorities had received info on the crypto traders back in August so people were kind of expecting something to happen. At this stage Skattestyrelsen isn’t treating them as serious offenders as cryptocurrencies are new and they don’t want to start fining people right away. However, recipients have been asked to present a number of documents from all exchanges that they traded on along with bank statements from any regular bank accounts that they own – failure to do so will lead to fines or even prosecution.”

Just because of this from Singh, doesn’t mean that a lot of crypto traders are going to be calm and collected, in fact I’m sure its the complete opposite. When you consider the complexity surrounding the reporting of capital gains, this is specifically correct.

Singh further added that “we have been getting a lot of queries from Danish crypto investors and [the] biggest fear for them is getting overtaxed as they are not able to accurately determine their capital gains manually. This is something that we are helping them with.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!