Cryptocurrencies are a newfound asset and that is why the laws regarding them are not very clear. Most countries still don’t have any rules to deal with the complex nature of these tokens. And this is why Denmark has now planned to release new laws regarding cryptocurrencies. These laws will help control the high fraud risk and tax filing problems involving crypto assets.
The new laws for cryptocurrencies
One of the reasons why countries are trying to formulate rules regarding crypto is tax. Since there is no proper rule, most investors either don’t pay tax on their crypto gains or don’t know how to file them. The authorities in Denmark discovered that over 60% of the Bitcoin in the country wasn’t taxed. Between 2015-19 over 16k people traded cryptocurrencies and 2/3rd of them didn’t pay any capital gains tax. So, the government was missing out on a lot. Even the tax ministry said that their tax codes are not compatible with crypto. This has led to a lot of filing errors and missing out altogether.
Denmark will take a look at these laws and make all necessary changes that are required to make the laws up-to-date. This will reduce the number of errors committed while filing and also tax frauds. The country is also sending out warning letters to those who are suspected of tax fraud and asking them to file their gains properly. Denmark is also one of the few companies whose central bank governor believes crypto not to be a threat to the bank.
Countries are taking crypto seriously
Yes, you heard that right almost all countries are now taking crypto seriously. They have been working on laws that make tax filing easier and also reduce fraud. These laws also help the authorities to work with crypto companies and let banks participate in the same. One such country is India, where the government is setting up a panel to formulate new laws for crypto. And this will mean the Indian banks will not hesitate to work with crypto exchanges in the future. We should also note that these laws will bring in a lot of new investors too.
What are your thoughts on Denamk making new laws regarding cryptocurrencies? And do you think other countries should also hurry up? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.