Those familiar with the crypto market will tell you that the industry does not get the same treatment across the world. In some countries and regions, the crypto industry is thriving and accepted by the government, and in others, it is outright banned.
But what about the Nordic region in Europe? The continent is well-known for being accepting towards crypto and many top crypto companies have made their home there. But it is worth exploring the situation in Nordic countries for any crypto lover who wants to live there, do business there, or visit at any point.
Regulations in Nordic Countries
When it comes to regulations, most Nordic countries seem to take a stance of not recognizing digital assets as currency but not banning them either. In Denmark, for example, cryptocurrency is not considered legal tender but crypto payments are not banned or prosecuted.
The same situation can be seen in Norway with crypto payments being accepted and a Central Bank Digital Currency being developed by the government, though crypto is still not legal tender. Sweden’s Financial Supervisory Authority has stated that cryptocurrency is legal to use but has stipulated that it is not legal tender.
In terms of adoption, Nordic countries report a healthy rate of crypto use, though this trails behind some other notable crypto-loving countries. In Norway, up to 10% of the population owns some amount of crypto and these assets are especially popular among younger people. Denmark has an 11% adoption rate, though this figure was lower prior to 2021. In Sweden, 9% of the population owns some amount of cryptocurrency.
As has been stated, crypto is especially popular among young people who use it to pay for goods and services, and on crypto gambling sites, as can be seen on business2community.com/no/.
In Denmark, cryptos are subject to income tax as opposed to capital gains tax. This is because crypto is mostly considered a private asset except in a few special cases. But overall, losses on crypto activities cannot be claimed as a business loss.
In Norway, things are a bit more complicated. Crypto assets are considered capital assets and so, they are subject to capital gains tax. But because the country doesn’t have a capital gains tax framework, they are often taxed as personal income.
In Sweden, capital gains, income tax, and interest income tax may apply to crypto depending on whether a profit or loss was made and also whether the crypto was earned as income, and if it was earned via staking.
The Nordics are home to a plethora of companies in the crypto and blockchain space. Some of these include Dibit Network, BitSpace, Coinxgen, and many more. This comes as no surprise as besides the cultural attitude towards cryptocurrency, many Nordic countries like Sweden have been ranked highly for ease of doing business. This means that in the future, more crypto and blockchain businesses should set up shop there.