Denmark has a fairly elaborate system of cryptocurrency regulation. However, the relatively small market size, tax burden, and restrictions hinder the development of crypto business in the country.
Hello! My name is Ilia Ilinskii...read about us
Country overview
#95
DenmarkCountry stats
Rating Points
135
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1.2%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
Empty
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
100
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
69 600
Total amount of crypto users out of the country's total population based on public data.
Taxation points
5
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
97.1
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Safe place
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Difficult
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - crypto wallet providers and custodians.
Good
Medium
Bad
Denmark is qualified as a safe place according to our security level rating. This jurisdiction has 73.4 points (from 100) for safety level in Numbeo crime rating (1). The homicide level (2) is 0.8 per 100,000 inhabitants a year. Level of firearm-related death (3) 0.91 per 100,000 inhabitants a year.
In 2021, Danske Bank, the largest bank in Denmark, stated that it won’t offer any cryptocurrency services to customers itself but also that it wouldn’t interfere with transactions (4) coming from crypto platforms.
According to the position of local tax authorities, being paid in cryptocurrency, either as a salary from employment or in exchange for services as a freelancer, is taxed similarly (5) to being paid in Danish kroner or another fiat currency. This means that from a tax perspective, there is no practical difference in what type of currency you receive your compensation – the income amount will be taxed as income in all cases.
The Danish Financial Supervisory Authority (FSA) is the main crypto regulator in Denmark, although the National Bank also has an oversight role. Denmark has implemented crypto regulation framework for VASPs in 2020 with amendments (6) in the Danish Money Laundering Act.
In May 2024, the Danish parliament implemented MiCA and approved amendments (7) in the AML Law regulating VASPs and CASPs. The position of the Danish FSA on crypto asset regulation is published in a special section () of its website. It gives an 18-month transition period to companies that are already operating.
| Tax name | Index |
| PIT tax Min | 8 |
| PIT tax Max | 52 |
| Corporate tax (CIT) | 22 |
| Min Individual CGT (for crypto) | 27 |
| Max Individual CGT (for crypto) | 42 |
| Wealth tax Min | 0 |
| Wealth tax Max | 0 |
PIT
An individual who is fully tax resident in Denmark will, as a main rule, be taxed according to the ordinary tax scheme by up to 52.07% based on PWC(9).
CIT
The CIT rate is 22% under PWC(10).
CGT
Capital gains are subject to the average CIT rate of 22% - 27% according to PWC(11).
You can find more information about crypto taxation procedures in the cryptocurrency taxation guide (12) from The Danish Customs and Tax Administration (Skatteforvaltningen).
1)Crime Index by Country 2023 Mid-Year
2)List of countries by intentional homicide rate
3)List of countries by firearm-related death rate
4)Denmark’s largest bank is cautious on crypto, but won't interfere. Article
5)Crypto Tax Guide Denmark – Updated 2022. Article
6)DreistStorgaard Crypto Asset Service Providers
7)Danish AML Law
8)FSA Information about the Danish Financial Supervisory Authority's practices in the crypto-asset market
9)Individual - Taxes on personal income. PWC
10)Corporate - Taxes on corporate income. PWC
11)Overview. PWC
12)Nu kan du tjekke din forskudsopgørelse for 2024. Article
Last update: December 2024