Tax Summary:

1. Personal income tax – from 8% to 56.5%
2. Corporate income tax – 22%

What law/s governs VASP activities?

1. Bekendtgørelse af lov om forebyggende foranstaltninger mod hvidvask og finansiering af terrorisme (hvidvaskloven) (AML law)
2. The FSA’s Guide to the Act on Measures to Prevent Money Laundering and Financing of Terrorism

What activities are included in VASP services?

According to § 1 (1) (cl. 22-26) of AML law:

1. Providers of exchanges between virtual currencies and fiat currencies.
2. Providers of virtual wallets – an entity that provides services to protect private cryptographic keys on behalf of its clients in order to store, store and transfer virtual currencies.
3. Providers of exchange between one or more types of virtual currency.
4. Virtual currency transfer providers.
5. Issuers of virtual currency.

Who is the VASP regulator?

1. Financial Supervisory Authority (“FSA“)

What is the procedure for registering a VASP for a local company?

There is no specific license for VASPs in Denmark. However, persons who, for commercial purposes, intend to engage in one or more of the activities listed in § 1 (22-26) of the AML law need to register with the FSA (it appears from the AML Act § 48(2)). The registration is mandatory for a company to carry out the activities in question. It is only necessary to register the company if you wish to offer one or more of the activities listed above within the business and if the company is not already supervised by the FSA in relation to other legislation.

Registration must only take place if the activity is carried out commercially. Registration must take place even if the activity is not the company’s main activity. If it is simply a matter of individual commercial dispositions that have a natural connection to the company’s main activity, the company does not have to be registered. 

Members of the company’s management as well as beneficial owners must, in connection with registration, be assessed as honorable before the company or person can be registered with the FSA. For this assessment, the person or company must submit criminal records. Criminal records must not be older than 6 months.

Registration form is here or electronic form is available at the link. It is necessary to provide:

1. Company details.
2. Personal data such as CPR. Number, address etc. (if new registration or change in circumstances regarding persons).
3. If the person or persons do not have a Danish CPR number, a copy of passport must be attached.
4. Criminal record.
5. For information such as CPR, number, address, etc. a power of attorney from the person in question must be attached.

Is there any specific authorization required for a VASP from another EU member state to provide services in this jurisdiction?

Persons who, for business purposes, intend to engage in one or more of the activities listed in § 1 (22-26) of the AML Act must register with the FSA without exception.

What is the liability for the activities of a VASP from another EU member state without local registration/authorization in this jurisdiction?

Under § 78, a violation of § 48(2) (i.e., failure to register with the FSA) is punishable by a fine unless a more severe penalty is provided by criminal law.

Manimama Legal & Growth Agency provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.

The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.