Crypto license in Sweden

Published:
January 4, 2023
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Today’s country has no special laws that would relate to the crypto regulation in Sweden of the crypto market. However, it is worth noting that a number of Swedish public powers have issued regulations, reports and previous legal assessments concerning their vision of the content of such a concept as “electronic currency”, and how the corresponding category in the regulatory aspect correlates with the provisions of the current Swedish legislation.

In particular, the Swedish FSA has defined cryptocurrencies as a category that belongs to their area of competence. This kind of approach is explained by the fact that e-currency trading (placing an offer to crypto exchange in Sweden is similar to the exchange activity in terms of simple,more accustomed  currencies) is a financial service, and therefore subject to mandatory reporting demands.

In the country, there are no regulations governing the use of blockchain technology. The adoption of such laws is not planned in the short and medium term, which complicates the process of regulating the activities of opening a Cryptocurrency Company in Sweden. The latter are obliged to conform to the demands and conditions that are closest to their type of activity.

The main supervisory authorities in country that affect the work of crypto companies are:

  • SFSA;
  • Swedish Data Protection Agency.

Swedish cryptocurrency taxes 

E-currency is not prohibited by law and its use is allowed by the powers. Nevertheless, local legislation considers bitcoin and altcoins not as a currency / money, but as transfers actions with assets (property). Therefore, a main factor affecting the amount of digital currency taxing is its price at the time of acquisition and the turnover of the e-currency during the reporting period.

For individuals

In the country, individuals are required to annually declare all transfers actions made using digital currencies. The powers recommend keeping a list of payments made with their use, including: loans, contributions to gambling.

Trading crypto in Sweden profits are subject to a 30% fund income tax. Losses are franchise up to 70%.

Income from commercial e-money assets that are securities are subject to income tax. The latter in the country is calculated according to the advanced model – the average rate is 32%.

For legal entity

There are no special laws concerning digital currency commercial platforms in the country. However, they are required to register and pay tax on profits from crypto-transfers.

The amount of costs for a company for crypto license in Sweden

The amount of your oncosts is usually equal to the amount for which you purchased your e-currency. But depending on how you got your digital money, the overhead amount is calculated differently.

You should be able to confirm the amount of overheads, for example, with receipts or original account statements from listed companies. If there were wallet addresses, transactions on the block chain should be consistent with reports of buying, mining, and selling bitcoins.

Is crypto regulated in Sweden?

Sweden quickly legitimized the fast-growing crypto industry by publicly declaring BTC and other advanced currencies as means of payment. Certain companies working with classical currencies (primarily Swedish exchange cryptocurrency platforms and crypto exchange license in Sweden) are required to obtain licenses, as well as comply with standard demands for combating money laundering and terrorist financing, including identifying their clients.
The regulation of e-currencies in the country assumes that transactions with virtual currencies are not subject to VaT, and mining is susceptible to tax on income from job placement or tax on business-company income.

Can you trade crypto in Sweden?

There are no bans on the use or trading of digital currencies in the country. However, certain transactions may require permission from the SFSa. If a digital money company offers services where bitcoin and altcoins act as means of payment, such a legal entity must enroll as a financial institution with the SFSA.

Do you need a license for crypto trading?

There are no licensing, registration or authorization demands specifically applicable to mining of virtual currencies in Sweden. Activities of the companies that obtained Sweden cryptocurrency exchange license are subject to anti-money washing regulations and special registration demands.

How do you get a cryptocurrency license?

In order to get permission for e-monies in the country, you need to set up a local business, create a corporate business-account and submit legal papers to the community controlling body. Corporations must obey the rules decided by local laws, in particular with relation to start-up capital, number of employees, etc.

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