Denmark: Public consultation concerning a proposed EU Directive for crypto-asset transactions
The Danish Ministry of Taxation initiated a public consultation regarding a proposed EU Directive on Administrative Cooperation (DAC8), which intends to enforce new regulations on tax transparency for service providers that handle crypto-asset transactions.
This is a topic of increasing importance, as the use of cryptocurrencies has become more widespread, and the popularity is growing continuously due to the potential for increased financial privacy, lower fees, and the ability to execute global transactions. The directive consists of several key measures:
- Determination of the income categories that must be reported through automatic exchange of information (AEOI) among countries in the EU without having to request the information.
- Expansion of the reporting requirements for financial institutions to include not only traditional financial instruments, but also digital currencies as well as e-money.
- Extension of the AEOI coverage to encompass rulings from different countries, issued from 1 January 2020 to 31 December 2025, for those individuals who have amassed a substantial net worth and possess at least €1 million in wealth that is either financial or investable.
- Specifying the scope and conditions for the mandatory AEOI reported by crypto-asset service providers.
- Imposing fines for failure to comply with established rules.
The measures are expected to come into effect on 1 January 2026, and interested parties have until February 23rd to submit their comments on the proposal.
Source: hoeringsportalen.dk
