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News

Danish Self-custodial Wallet Ban Is Not Now Available

July 2, 2024 - Around 2 mins mins to read

Key Points:

  • The Danish Financial Supervisory Authority (DFSA) clarified it has no plans for the Danish self-custodial wallet ban.
  • DFSA’s regulatory focus is on custodial services where crypto assets are managed on behalf of clients, in line with the MiCA regulation.
  • Non-custodial wallets, which do not involve custody of private keys by providers, are exempt from MiCA regulations and remain unaffected.
The Danish Financial Supervisory Authority (DFSA) has clarified its stance on cryptocurrency regulations following recent speculation. Contrary to rumors circulating on social media, DFSA has no plans for a Danish self-custodial wallet ban.
Danish Self-custodial Wallet Ban Is Not Now Available

DFSA Clarifies No Danish Self-custodial Wallet Ban

According to Cointelegraph, Tobias Thygesen, DFSA’s director of fintech, payment services, and governance, emphasized that the regulatory focus remains on customer services where crypto assets are managed on behalf of clients.

“We are aware of some rumors circulating on social media suggesting that the DFSA intends to ban hardware wallets and other non-custodial wallets,” Thygesen stated, addressing the confusion. “This is incorrect. The DFSA has not proposed any such ban.”

The confusion arose from misinterpretations surrounding the Markets in Crypto-Assets (MiCA) Regulation, set to take full effect on June 30. MiCA explicitly exempts crypto asset services that operate in a fully decentralized manner without intermediaries from regulation.

Therefore, non-custodial wallets, which do not involve custody of private keys by service providers, fall outside MiCA’s regulatory scope. Thygesen reaffirmed that hardware wallets, which do not entrust private keys to providers, remain independent by MiCA regulations.

Non-Custodial Wallets Exempt from MiCA Regulations

Mikko Ohtamaa, co-founder of Trading Strategy, mistakenly interpreted DFSA’s recent assessment with a Danish self-custodial wallet ban. However, DFSA clarified that their regulatory framework mainly targets activities involving custody and management of crypto assets on behalf of clients, ensuring compliance with MiCA guidelines.

The DFSA’s position has clarified its commitment to balanced crypto asset regulation, focusing on custodial services while allowing non-custodial solutions like hardware wallets to operate freely.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Danish Financial Supervisory Authority

Danish Self-custodial Wallet Ban

DFSA

MiCA

Self-custodial Wallet

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Danish Self-custodial Wallet Ban Is Not Now Available

Key Points:

  • The Danish Financial Supervisory Authority (DFSA) clarified it has no plans for the Danish self-custodial wallet ban.
  • DFSA’s regulatory focus is on custodial services where crypto assets are managed on behalf of clients, in line with the MiCA regulation.
  • Non-custodial wallets, which do not involve custody of private keys by providers, are exempt from MiCA regulations and remain unaffected.
The Danish Financial Supervisory Authority (DFSA) has clarified its stance on cryptocurrency regulations following recent speculation. Contrary to rumors circulating on social media, DFSA has no plans for a Danish self-custodial wallet ban.
Danish Self-custodial Wallet Ban Is Not Now Available

DFSA Clarifies No Danish Self-custodial Wallet Ban

According to Cointelegraph, Tobias Thygesen, DFSA’s director of fintech, payment services, and governance, emphasized that the regulatory focus remains on customer services where crypto assets are managed on behalf of clients.

“We are aware of some rumors circulating on social media suggesting that the DFSA intends to ban hardware wallets and other non-custodial wallets,” Thygesen stated, addressing the confusion. “This is incorrect. The DFSA has not proposed any such ban.”

The confusion arose from misinterpretations surrounding the Markets in Crypto-Assets (MiCA) Regulation, set to take full effect on June 30. MiCA explicitly exempts crypto asset services that operate in a fully decentralized manner without intermediaries from regulation.

Therefore, non-custodial wallets, which do not involve custody of private keys by service providers, fall outside MiCA’s regulatory scope. Thygesen reaffirmed that hardware wallets, which do not entrust private keys to providers, remain independent by MiCA regulations.

Non-Custodial Wallets Exempt from MiCA Regulations

Mikko Ohtamaa, co-founder of Trading Strategy, mistakenly interpreted DFSA’s recent assessment with a Danish self-custodial wallet ban. However, DFSA clarified that their regulatory framework mainly targets activities involving custody and management of crypto assets on behalf of clients, ensuring compliance with MiCA guidelines.

The DFSA’s position has clarified its commitment to balanced crypto asset regulation, focusing on custodial services while allowing non-custodial solutions like hardware wallets to operate freely.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.