Denmark is a country that encourages innovation and development. This also includes being Bitcoin-friendly and supporting the blockchain technology.
Investors who start a cryptocurrency business in Denmark benefit from a welcoming business environment and favorable regulatory regimes.
Our agents can help you open a company in Denmark that specializes in cryptocurrency, blockchain or other fintech services.
Our team can also help you open a bank account in Denmark, which is necessary when setting up a new company in this country.
We invite you to watch the following video on opening a cryptocurrency company in Denmark:
Denmark is one of the most cryptocurrency friendly countries in the world and it is one of the first jurisdictions to have declared its position on the treatment of the Bitcoin.
The Danish Central Bank does not regulate the Bitcoin and does not treat the cryptocurrency as a regular currency.
The Financial Supervisory Authority of Denmark does not regulate or prohibit the operation of cryptocurrency businesses in the country, including Bitcoin businesses.
Buying, selling and trading Bitcoin in Denmark is fairly easy due to a large number of Bitcoin exchanges that operate freely.
Many fintech companies in Denmark that specialize in blockchain technology and cryptocurrency are offering a solution for Bitcoin and other cryptocurrency payments.
The Danish Government promotes digitization and has already initiated a set of projects that aim to improve the country’s digital infrastructure, its information security and, in a unique and ambitious project, to gradually eradicate the use of paper money.
Cashless payment methods have become more popular in Denmark. As part of this digitization trend, cryptocurrency businesses in Denmark and fintech companies, in general, may explore the various opportunities.
Our Danish company formation agents can give you complete details on the requirements for investors, including those for foreign entrepreneurs in the country.
Compliance with the current regulations for virtual asset services providers is a key issue to consider when opening a cryptocurrency company in Denmark.
The Danish financial sector is subject to regulation and control and various acts govern the licensing and conditions set forth for companies in this field.
The Danish Financial Supervisory authority is the main regulator and supervisor, however, the national bank (Nationalbanken) also has a role.
A crypto license in Denmark is not issued per se, however, requirements are in place for virtual asset service providers.
The virtual asset service provider license issued by the supervisory authority allows the holder to offer services related to:
Regulations are in place for virtual currencies that fall under the definition of a financial instrument. In these cases, public offerings are subject to the prospectus requirements.
For those investors willing to apply for the equivalent of a crypto license in Denmark, the one for virtual asset service providers, the following regulations are of interest:
The anti-money laundering (AML) Act was amended in 2020 to comply with the EU’s 5th Anti-money laundering Directive.
The Directive introduced the principles for regulating providers involved in exchange services between virtual currencies and fiat currencies and also for custodian wallet providers.
The AML Act also includes a number of provisions introduced in 2021 for the those who offer exchange platforms for the trading of virtual currencies, as well as those who provide virtual currency transfer services. All of these providers are now also subject to the AML Act.
While there are no specific tax rules for virtual currencies, companies that provide virtual asset services are subject to the regular taxes in the country.
Income from virtual currencies is regulated under the Danish National Tax Act.
Income derived from the disposal of assets is not subject to tax in Denmark unless deemed income from speculation. Speculation from virtual currencies is subject to an assessment.
Some of the following tax rates are relevant to these types of activities:
For individuals involved in mining activities, the activity can be subject to tax on the next income produced in the income year. Losses cannot be deducted in other income nor carry forward losses.
The steps needed to open a Danish company are summarized below:
One of our agents can help you throughout all of these steps so that you can start your business in the shortest amount of time possible.
Get in touch with us for more information and for assistance for all matters concerning company formation in Denmark. Our team can also assist you if you intend to register a trademark in Denmark.
There is more to cryptocurrencies than buying and selling them. While this is a sure way of profiting, entrepreneurs also have other options when deciding to work with virtual currencies.
Our agents who specialize in company registration in Denmark present five cryptocurrency startup business ideas.
For any company formation related matters, including the equivalent of the crypto license in Denmark, our specialists are ready to answer your questions.
The following video shows some of these ideas for starting a cryptocurrency business:
The list below contains five ideas for a cryptocurrency business and a few issues to consider about each suggestion.
Our team can help you open a company that will provide virtual asset services, essentially applying for a crypto license in Denmark.
Investors who want to open a company in Denmark can contact us for detailed information regarding each of the company formation steps.