Denmark Confirms No Ban on Bitcoin Wallets
Rumors circulating on social media have stirred up quite a bit of confusion, but rest assured, Denmark is not banning Bitcoin wallets.
Contrary to the buzz, the Danish Financial Supervisory Authority (DFSA) has confirmed there are no plans to prohibit self-custodial cryptocurrency wallets. Tobias Thygesen, the director of fintech, payment services, and governance at the DFSA, clarified that the regulator has no intentions to ban hardware wallets or any form of non-custodial wallets. Thygesen stated:
“We are aware of some misinformation circulating on social media suggesting that the DFSA intends to ban hardware wallets and other non-custodial wallets.”
This misunderstanding likely arose from a recent regulatory assessment related to Europe’s Markets in Crypto-Assets (MiCA) Regulation, which came into effect on June 30. The DFSA’s assessment, published on June 25, was intended to address challenges in regulating decentralized crypto asset services. However, some people misinterpreted its content, leading to false rumors about a wallet ban.
READ MORE: Circle Gains First EU License for Stablecoins Under MiCA
The assessment outlined principles to help those in the crypto market understand when their services are considered fully decentralized. This distinction is crucial because completely decentralized offerings aren’t subject to MiCA regulation and thus don’t require a license.
New rules set to regulate Denmark’s crypto market, including both issuers and service providers, will come into play by the end of 2024. However, if a service is fully decentralized, it won’t be covered by these rules.
Thygesen emphasized the significance of these principles, which aim to help relevant actors determine whether their offerings can be classified as fully decentralized. This classification is more than just a technical detail; getting it wrong could mean providing services unlawfully.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
