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The Finnish Tax Administration will significantly increase monitoring of cryptocurrency transactions beginning January 2026, amid concerns that tens of thousands of taxpayers have failed to report virtual currency income.
This year, around 18,000 taxpayers declared cryptocurrency sale income for 2024, generating approximately €225 million in capital gains and €68 million in paid taxes, according to the Tax Administration. However, senior advisor Juho Hasa noted that only about 10% of crypto transactions are currently reported, a pattern consistent with other Nordic countries.
Estimates suggest roughly 450,000 Finns hold cryptocurrencies, with around 100,000 failing to declare income from these assets last year. While reporting cryptocurrency ownership is not mandatory, profits from sales must be declared, and the Tax Administration can request transaction data from both domestic and foreign crypto platforms. Noncompliance can lead to higher tax rates and, in cases of substantial sums, criminal investigation.
The implementation of the Crypto-Asset Reporting Framework (CARF), an OECD-backed international reporting standard, will facilitate cross-border information sharing from crypto platforms to tax authorities in 70 countries. Taxpayers may see pre-filled tax forms reflecting their cryptocurrency activity, with up to 70,000 Finns potentially affected in the first year.
The new framework aims to improve reporting compliance and increase tax revenue, though officials warn that fluctuations in cryptocurrency values make precise revenue projections difficult.
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