Neonomics has established a base in the country, with several large customers across different industries validating the security of Open Banking powered payments and data services, with the two companies working together.
Open Banking enables a user to directly and securely access their bank account in-app to initiate payments directly from their account, all within the security architecture of their bank.
Firi has launched in Denmark this summer and now has 150 000 customers in the Nordics. The two companies have a long-standing collaboration, emerging from their roots in Norway’s fintech scene.
Cryptocurrency is no longer a fringe idea an experiment. However, despite its huge adoption and success, crypto still has some ways to go to become mainstream. The bonds of trust and habit between people and traditional banking are too strong for people to fully migrate to crypto and blockchain-built solutions.
Open Banking may help the crypto onboarding friction. A digital protocol that removes all the security challenges that have been associated with digital payments. Free from legacy payment prerequisites, it allows users to use their bank accounts to transfer money directly.
By implementing the Open Banking protocol, payments are redirected to the user's bank site at checkout. After that, it's just a matter of completing the authentication process, and you are taken back to the original page.
Apart from being a very easy process to follow, seeing the environment of the bank they trust creates a sense of security for the users. Going back to the authentication step, Open Banking simplifies the once multistep process.
In Denmark, cryptocurrencies are being bought and sold like anywhere else in the world. However, each transaction must be optimally resolved into financial services, assets in investment, or as a form of payment.
This determines if the use of cryptocurrency is under Danish laws to prevent cases of money laundering and untaxed alternative investment funds.
Whether a cryptocurrency is subject to individual taxes in Denmark depends on the nature of the token’s use. Losses resulting from cryptocurrency transactions are taxed differently depending on the circumstances. According to the Danish Tax Authority (DTA), losses concerning cryptocurrency shall not be deducted from taxes as business losses. Additionally, the DTA’s regulation suggests that cryptocurrency companies cannot deduct business losses since their whole business revolves around cryptocurrency. Even if the value of Bitcoin significantly drops, those losses cannot be deducted as a cost of doing business when used as a means of payment. However, losses on the sale of some cryptocurrencies are tax-deductible. Nevertheless, these regulations seem to show that cryptocurrencies have fewer tax benefits than other payment forms in Denmark.
There are several caveats in taxing gains and profits resulting from cryptocurrency. According to the Danish Tax Council (DTC), cryptocurrency profits are subject to income taxation. In contrast, other cryptocurrencies are subject to financial contract taxes if they are tied to another value and are more comparable to structured debt.
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