Fintech Market Overview

This article does not constitute legal advice.

Fintech in Denmark

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A growing Danish fintech market creates new commercial opportunities by connecting start-ups, corporates, investors and academia and by connecting the Nordic and global fintech ecosystems.1

Danish government remains committed to improving conditions for fintech entrepreneurs to start up and expand in order to accommodate Denmark's development as a leading fintech hub.2

The Danish Financial Supervisory Authority (DFSA) has taken several steps to position Denmark as a fintech-friendly jurisdiction. This includes forming a dedicated fintech unit, a Division of Fintech, Payment Services and Governance, and setting up a working group for blockchain and decentralised finance regulatory initiatives. Additionally, DFSA has developed the Fintech Forum, FinTech Lab (regulatory sandbox), FAQ section about fintech on its website and guidance services.3

In terms of taxation, no specific incentives are aimed at fintech companies, which is common in Denmark since specific companies or sectors rarely receive special tax benefits. Digital assets, however, seem to be undergoing a continuous development since tax authorities seem to make decisions about their specific taxation in a somewhat unpredictable fashion.4

In Danish law, there is no specific fintech license. As a rule, the traditional financial regime applies to all 'financial activities' carried out with the use of technology. Fintech companies will therefore need licenses and marketing requirements based on the type of activities they intend to undertake, which are predominantly harmonised with EU legislation.4

Fintech is currently governed by the following Danish laws:

  1. the Payments Act of 7 December 2021, as amended from time to time
  2. the Money Laundering Act of 19 May 2021, as amended from time to time
  3. the Financial Business Act of 15 December 2021, as amended from time to time
  4. the Capital Markets Act of 1 November 2021, as amended from time to time
  5. the Data Protection Act of 23 May 2018, as amended from time to time
  6. the Marketing Act of 3 May 2017, as amended from time to time
  7. the Consumer Contracts Act of 17 December 2013, as amended from time to time
  8. the Consumer Loan Business Act of 24 April 2019, as amended from time to time
  9. Regulation (EU) 2020/1503 on European crowdfunding service providers for business 4

It is necessary to observe specific requirements based on harmonised EU legislation when marketing MiFID services, payment services, or AIF management services. As well as these requirements, it is crucial to comply with the Marketing Act's general marketing rules. The marketing of fintech services and products not regulated by the financial regime, such as cryptoassets, will only be subject to the Marketing Act's general rules.4

  1. identification: secure identification of users logging in to a website
  2. validation: when the user validates himself or herself with NemID (MitID), the company is assured that the user is who they say they are
  3. signing: the possibility to offer digital signatures to an agreement. NemID (MitID) is a legally valid digital signature 4

Traditionally, Denmark has been at the forefront of fintech development and has been a pioneer in, for example, creating digital IDs (NemID (MitID)), payment cards (Dankort), mobile payment apps (MobilePay), public digital right registers and notaries, digital vaccine passports, and driving licenses. Both authorities and the private sector are taking strong initiatives to accelerate the development.4

Crowdfunding in Denmark

Fintech in other countries

Let's introduce you

Danish Fintech Lawyers

Viacheslav Losev

Viacheslav Losev

Legal support for FinTech and Blockchain projects

Silvia Calls

Silvia Calls

We work for international SMEs, startups and Telco's

Kristina Berkes

Kristina Berkes

Participation as a lawyer at investment venture funds, leading venture M&A deals in IT, supporting iGaming and business assets

  1. https://cphfintechweek.com/
  2. http://www.finanstilsynet.dk/Tilsyn/Information-om-udvalgte-tilsynsomraader/Fintech/Formaal
  3. http://www.finanstilsynet.dk/tilsyn/information-om-udvalgte-tilsynsomraader/fintech/fintech-forum
  4. https://thelawreviews.co.uk/title/the-financial-technology-law-review/denmark
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