You can see the rules and regulations in other jurisdictions.
Due to the fact that cryptoassets aren't categorised as either currencies or securities or financial instruments, rules that apply to digital marketplaces do not apply to cryptoasset exchanges unless they can be classified as financial instruments. In addition to the regulations mentioned above, operators of digital platforms are also bound by general regulations, such as anti-money laundering (AML), competition, marketing, consumer protection, and intellectual property rights protection, as well as the General Data Protection Regulation (GDPR). Based on the characteristics of both the cryptoassets offered or traded on the marketplace and the services offered, the applicability of financial regulation will be assessed.1
The EU's regulatory efforts in this area are ramping up, evidenced by the MiCA proposal published on 24 September 2020 and an accompanying amending directive. These developments are seen as having a major impact and should ensure greater parity in the market and provide enhanced protection for investors. Denmark is expected to meet the EU's deadline for implementation of these new harmonised measures.2
In the absence of specific members of regulation, cryptoassets, which fall outside the definition of financial instruments, do not require a licence to be traded or exchanged. Companies rendering these services within the Danish borders should however be mindful of any other applicable legislation, such as AML laws, marketing regulations, contractual requirements, GDPR and consumer protection guidelines.2
It should be noted, however, that digital assets can be considered financial instruments. Therefore, providers should always consider whether a token or cryptoasset meets the criteria for qualifying as a financial instrument.2
Several provisions of the Fifth AMLD are incorporated into the Danish Act on Preventive Measures against Money Laundering and Financing of Terrorism (the Money Laundering Act).2
It is mandatory for cryptoasset issuers to register with the DFSA in order to provide cryptoasset and digital asset services. To register with the DFSA for AML, the company's management and beneficial owners must be considered 'proper' before registering. In order to accomplish this, the company will need to submit criminal records for its board members, executive board members, as well as its ultimate beneficial owners.2
The company must ensure that its employees have received appropriate training in the AML Act and rules issued pursuant thereto as well as relevant data protection requirements when it becomes registered.2
A VAT exemption or rule does not currently apply to cryptoassets or services. Therefore, it is necessary to assess whether VAT applies based on the harmonised rules set forth by the EU VAT Directives on a case-by-case basis. When a financial technology is applied or included in a VAT-exempt service, such as fund administration, a VAT exemption may apply.2
Since the European Court of Justice has stated that certain cryptoassets may fall under VAT exemption based on recent court practice, there is a presumption that trading in those assets can be exempt from VAT. Under the provision relating to transactions relating to 'currency, bank notes and coins used as legal tender', transactions exchanging traditional currencies for Bitcoin units are exempt from VAT.2
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