Cryptocurrency Trading to be blocked in Denmark

Danske Bank, one of the biggest banks located in Copenhagen, has warned his customers against purchasing the cryptocurrencies
30 March 2018   1502

This bank has got departments in Trondheim (Norway) and Vilnius (Lithuania). According to the announcement on its website, the company does not presently allow any cryptocurrency transaction. Cryptocurrencies are not held by a central bank, so the bank declares about the lack of the investor and consumer defence commonly connected with with traditional investments and currencies.

Also, cryptocurrencies have been strongly volatile and the price formation is non-transparent, as it was said in the message. All these points have formed a very limited position of the investors about the development of the market and what factors do control the price.

The bank accentuated the lack of the framework control and transparency as the most significant reasons for not investing in cryptocurrencies. These problems have made digital money a target money laundering and extortion.

Danske Bank requires that a financial establishment is obliged to assist in the struggle against the crimes. Today cryptocurrencies do not correspond to the optimal level of transparency for the bank to fulfil anti-money laundering (AML) obligations.

Though, as it was said in the notice, the bank might be able to change his decision relatively to cryptocurrency, if the trading market becomes more developed and
limpid.

The cryptocurrency surrounding environment is also will not been supported by the bank. It has refused from the opportunity of buying financial instruments that could influence on the price of cryptocurrencies. Such instruments may also include the exchange trade notes which reflect the price of the cryptocurrency. The exchange trade notes are characterised by volatility and strong risk.

Danske Bank does not forbid using of its bank-issued credit cards connected with cryptocurrency trading. But the customers are recommended to adhere to the current anti-corruption procedures and AML rules.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   171

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.