Denmark declares Bitcoin legal for trade

The Financial Supervisory Authority of Denmark came out with a statement today on the subject of Bitcoin.

The statement mainly geared towards the dangers revolving around Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term like Bitcoin and Litecoin.

The statement presented 6 negative aspects on cryptocurrencies and went into detail on each one.

- There is a risk of losing your virtual money to exchanges.
- There is a risk of your virtual money being stolen directly from your digital wallet.
- In the chance that cryptocurrencies do not take off, you might risk being heavily invested in the currency, without the ability to exchange it for FIAT.
- The cryptocurrency exchange prices fluctuate rapidly.
- Cryptocurrencies are linked to criminal activity.
- There is a future possibility of cryptocurrencies being taxed.

Even with the negative light shined on cryptocurrencies, the Financial Supervisory Authority of Denmark did not imply any regulations on them, and declared it legal to be traded. Businesses who deal in Bitcoin will not be subject to financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term in Denmark. Furthermore, any business interested in establishing Bitcoin exchanges is able to do so without the need of approval from the financial authorities.

On that note, another European country is making a point with Bitcoin. In Helsinki Finland, the first European Bitcoin ATM was unveiled. After Norway’s announcement yesterday, we can see a difference in opinion on the subject of Bitcoin and other cryptocurrencies throughout Europe. We expect more countries to state their position on Bitcoin in the near future.

You can read The Financial Supervisory Authority of Denmark report on Biotcoin here.

In related news: China declares further restrictions on Bitcoin.

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