Denmark taxes BTC profits Binance sued by US regulator

The Supreme Court of Denmark announced on March 30, 2023, that Bitcoin (BTC) sales proceeds must be taxed as ordinary income. This new regulation is said to affect both BTC investors and miners. 

According to the judges, users buy Bitcoin expecting to sell it later at a higher price for the sole purpose of speculation. The magistrates believe that such dealings should not be tax-free under domestic legislation. 

Denmark officials have also decided that anyone who amassed their BTC wealth through crypto mining and then sold it for a profit must follow taxation guidelines. Due to the strict guidelines the country plans to rule over BTC users, fans of Bitcoin casino games who play at cryptocurrency sites like Gamdom are concerned because of higher tax rates. 

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Some coin users were not shocked by the announcement since Denmark is not exactly a safe tax haven in crypto taxation. In the country, capital gains are taxed at a rate of 27% for people whose earnings are below 58,900 DKK. Meanwhile, a tax rate of 42% is imposed on those whose earnings are over the threshold.

Despite the ruling of Denmark’s Supreme Court for BTC taxes, the central banks in the country are said to not be fond of the coin and its ability to be taxable. In May 2021, the head of the Danish Central Bank Lars Rohde, criticised the volatility and decentralised nature of BTC. ‘It's an extremely risky investment. There is no stability and no guarantee from either side’. 

Rohde is joined in his opposition to this asset class by a large number of his peers. This includes the Governor of the Bank of England, Andrew Bailey and the President of the European Central Bank, Christine Lagarde. 

Binance sued by the CFTC 

Binance, the largest crypto exchange in the world, and its CEO and founder, Changpeng Zhao, are being sued by the Commodities Futures Trading Commission (CFTC). The crypto exchange is being sued for allegedly running an illegal exchange and a ‘sham’ compliance programme.

The CFTC filed a lawsuit against Zhao and the company's former top compliance employee Samuel Lim for willful evasion of US law. This is while they are engaged in a deliberate strategy of governing arbitrage for commercial benefit.

‘The complaint from the CFTC was unexpected and disheartening. Based on our initial analysis, the lawsuit appears to have an inadequate presentation of facts, and we do not agree with the description of many of the concerns described in the complaint’, Zhao said in a statement.

Amid the news, many crypto users believe that the case is part of a larger, more publicised effort to crack down on crypto businesses. It is said that US prosecutors and civil investigators have been going after crypto firms for years, accusing them of selling illegal services and failing to follow regulations. 

With Binance being sued, fans of Bitcoin casino games who use the cryptocurrency exchange when playing at top casino sites such as Gamdom are worried whether they will be affected by it. Many are also on edge since the United States is not the only country that’s starting to implement strict guidelines on the use of digital coins. 

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Words: Rica Miranda