Denmark is a crypto-friendly jurisdiction that has fully embraced the EU's MiCA regulation, with the Danish FSA as the main regulator. However, the tax regime is notably strict, with crypto gains taxed as personal income at a high progressive rate up to 53%. Crypto businesses face limited banking access, though new legislation is aimed at improving this. Regulated by Finanstilsynet.

Notable features: MiCA regulation fully implemented, Progressive income tax up to 53%, DAC8 reporting obligations, Proposed bill for mandatory bank access

Crypto-Asset Service Providers (CASPs) must obtain a MiCA license from the DFSA, with the framework fully in effect by the end of 2024. Prior to MiCA, all crypto businesses offering services like exchange or custody were required to register with the DFSA under the Money Laundering Act for AML/KYC compliance.

Gains from cryptocurrency are generally taxed as personal income (not capital gains) if acquired for speculative purposes, with a tax rate of up to 53%. Losses are deductible at a rate equivalent to 26% of the loss.

Limited

https://www.dfsa.dk/news/2024/jun/crypto-assets_250624, https://skat.dk/en-us/individuals/shares-and-securities/tax-on-cryptocurrency-know-the-rules-and-avoid-a-tax-bill/calculate-and-declare-gains-and-losses-on-cryptoassets, https://www.dfsa.dk/, https://dreiststorgaard.dk/en/videnognyheder/crypto-asset-service-providers/