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Join WhatsApp channelDenmark’s financial regulators are intensifying their efforts to strengthen regulations in the cryptocurrency industry. They are specifically targeting cryptocurrency service providers, aiming to prohibit local banks from holding cryptocurrency assets as a risk management strategy.
To implement these regulations, the Danish Financial Supervisory Authority (DFSA) has issued an official directive to Saxo Bank, a prominent investment bank in Denmark, instructing them to sell off their current holdings of cryptocurrencies.
The DFSA has expressed concerns about Saxo Bank’s provision of cryptocurrency trading options and crypto-linked exchange-traded funds and notes to its customers. However, the recent order does not require the bank to cease offering these services.
It’s important to note that the full implementation of the Markets in Crypto-Assets Regulation (MiCA) has been delayed until December 30, 2024, as specified in Article 146 of the regulation. The amendment to the Capital Requirements Directive (CRD), Annex I, will also come into effect on the same date. As a result, the crypto asset market in Denmark will remain largely unregulated until the specified deadline.
Saxo Bank has stated its compliance with the DFSA’s order, mentioning that its cryptocurrency holdings are minimal and primarily serve as risk hedges. The regulatory approach in Denmark continues to be conducted on a case-by-case basis, similar to other countries.
In addition to these regulatory actions, Denmark’s Supreme Court recently ruled that profits derived from the sale of cryptocurrencies, including bitcoin, are subject to taxation. These rulings have clarified the taxable nature of crypto gains under the country’s existing laws.
Overall, these actions by Danish financial regulators, including the directive for Saxo Bank and the court rulings on taxes, signify a tightening of regulations in the cryptocurrency sector, reflecting a global trend in many countries.
