Danske Bank, the largest bank in Denmark, believes that cryptocurrencies represent a "significant digital innovation," which is why many people find these assets interesting. However, there are still several reasons why Danske cannot support them, the bank said in an announcement.
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Particularly, the bank says the cryptocurrency trading is not completely transparent, which may make it difficult for financial institutions to meet anti-money laundering obligations and fight criminal activity. Danske also added that cryptocurrencies only partially regulated and do not have the consumer protection. Moreover, many digital assets are subject of high volatility and are "extremely energy intensive."
"However, we continuously monitor developments in the area of cryptocurrencies, and as the cryptocurrency market matures and is further regulated, we will review our position," the bank said.
Nonetheless, the bank reassured that customers that deposit funds that stem from investments in cryptocurrencies will be treated the same way as deposits of funds from other types of investments. Danske's statement comes after the Danish Tax Agency found out that two-thirds of local transactions in cryptocurrencies are not taxed. The Danish tax ministry claims that the country’s a century old tax code is not just designed to deal with cryptocurrencies.
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