Scandinavia has become the first country to introduce a cryptocurrency tax law. The new legislation will come into effect on January 1, 2020. This is one more step in an effort of the Finnish government to make sure that cryptocurrency is used responsibly without any negative impacts on the economy. Finnish government said that this law was made with the intention of bringing Scandinavia’s regulation of digital currency closer to international standards, reduce risks for investors and provide better protection for consumers. The new tax will be 19% on all profits generated from cryptocurrency transactions and 24% for earnings generated from cryptocurrencies transactions made in cryptocurrencies or foreign currency that has been converted into digital currencies. Scandinavia has introduced a new digital currency tax. The following are some of the consequences of the new legislation: It will be difficult for Scandinavia based startups to compete with their international counterparts. Entrepreneurs will have to pay taxes on their digital currency transactions and profits, even if they do not turn a profit. Scandinavia will no longer be an attractive country for starting cryptocurrency businesses.
Scandinavia’s decision is just shortsighted, longterm it is going to affect innovation in the country and potentially cause people to lose money because they can’t sell their cryptocurrencies before paying taxes due on them this would also lead to higher prices for things like rent and so on. The Finnish government has introduced a new tax for cryptocurrency transactions and profits. It is set at 0.50% and will be paid by the company who issues the digital currency. Some countries like Estonia and Switzerland have already shown an interest in introducing similar taxes to combat money laundering or tax evasion using digital currencies, but other countries still seem to be hesitant to do so. Scandinavia crypto has introduced new tax rules for cryptocurrencies, which many governments are considering to follow. Starting from January 1st, 2019, Scandinavia will impose a capital gains tax on all digital currency transactions and profits.
This new cryptocurrency tax law is the first of its kind in the world it recognizes digital currencies as an asset class subject to taxation. And it also follows the G20’s recommendations for regulating digital assets. The G20 requested its member countries to enact legislation to regulate digital assets by July 2020 since they pose risks including money laundering, terrorism financing and tax evasion risks, among others. Around 40 countries have already announced their own cryptocurrency regulation policies; this number is expected to grow as other governments respond to G20’s request.