The EU Tax Observatory study highlights that tax evasion among Danish crypto traders is widespread, affecting 90% of them in 2021. Notably, 95% of investors in the bottom decile and 86% in the top decile failed to report their income.

The research indicates a trend of Danish traders shifting to foreign exchanges to circumvent domestic tax regulations. This migration has intensified since the implementation of reporting requirements in 2019.

Global reporting standards are expected in 2026, with the OECD and EU initiatives set to require crypto platforms to share transaction data with tax authorities. Denmark is also considering a 42% tax on unrealized crypto gains.