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Denmark vs South Korea

Crypto regulation comparison

← Back to map | Denmark | South Korea
Denmark

Denmark

South Korea

South Korea

Legal
Legal

Cryptocurrency is legal in Denmark and regulated under EU frameworks including MiCA. Denmark has notably high tax rates on crypto gains, treated as personal income and taxed at rates up to 52%. The Danish Tax Council confirmed in 2018 that gains and losses on Bitcoin are taxable.

South Korea is one of the world's largest crypto markets. The Virtual Asset Users Protection Act (VAUPA), effective July 2024, provides comprehensive investor protection including requirements for exchanges to hold user assets in cold storage and carry insurance. All VASPs must register with FIU and comply with strict AML rules under the Specific Financial Information Act. A 20% crypto gains tax (above KRW 2.5 million exemption, raised from the original 250K KRW threshold) has been deferred multiple times and is now scheduled for January 2027.

Tax Type Capital gains
Tax Type Varies
Tax Rate 37-52%
Tax Rate 20%
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining Yes Yes
Regulator Finanstilsynet (Danish FSA), Skattestyrelsen
Regulator FSC (Financial Services Commission), FSS, FIU (Korea Financial Intelligence Unit)
Stablecoin Rules Regulated under EU MiCA framework (Denmark is EU member but outside eurozone)
Stablecoin Rules Under development; stablecoins subject to VASP rules
Key Points
  • Crypto gains taxed as personal income at 37-52% (among the highest in the world)
  • Losses on crypto can be deducted against gains
  • Finanstilsynet supervises crypto businesses under the Danish AML Act
  • Denmark does not have its own crypto-specific legislation beyond EU frameworks
  • Skattestyrelsen (tax authority) actively monitors crypto transactions and issues guidance
Key Points
  • Virtual Asset Users Protection Act (VAUPA) effective July 2024 — major investor protection law
  • VASPs must register with FIU and partner with real-name verified bank accounts
  • 20% national tax (22% effective incl. 2% local income surtax) above KRW 2.5M annual exemption (deferred to January 2027)
  • Exchanges must hold 80%+ of user assets in cold wallets and carry insurance/reserves
  • Only won-denominated trading pairs allowed on major exchanges (Upbit, Bithumb, Coinone, Korbit)
Sources
Sources