Finland | Many crypto-investors are in for a nasty surprise: The tax authorities get information about transactions

Tens of thousands Finnish crypto-investors can expect a nasty surprise a year from now.

In the future, the taxman will get even more comprehensive information about the trading of crypto-assets.

A large part of cryptocurrency transactions made by Finns are currently not reported to the tax authorities. In 2024, a total of 18,000 Finns reported their cryptocurrency transactions to the tax authorities. The number was very small in relation to the number of crypto investors.

The taxman estimates that up to 450,000 Finns have crypto holdings. However, not all of them are actively trading.

“If it is estimated that 30 percent of crypto-investors will liquidate some of their holdings during the year, more than one hundred thousand taxpayers should report information and income to taxation”, Chief Inspector of the Tax Administration Jude says.

In recent years, perhaps only one in ten crypto-investors has properly declared their income to the tax authorities. This has resulted in an annual tax deficit of 20–50 million euros for the state.

Many who have invested in crypto-assets may not have even thought that it is taxable income. For example, so-called meme coins are often thought of as entertainment or betting, but profits made with meme coins are taxable income just like anything else.

Situation will change next year. The taxman will get even more detailed information about crypto transactions from the tax year 2026.

There is a change in the law in the background. Finland is not moving alone, but the law is based on a broader project in OECD countries. Almost 80 countries have committed to exchanging information on crypto services.

In the future, the Finnish authorities will therefore receive comprehensive information from both domestic and foreign crypto platforms.

For crypto investors the issue will become concrete at the beginning of 2027, when the pre-filled tax returns arrive from the Finnish tax authorities. They are filled with transactions reported by Finnish service providers, at least in theory.

Pre-filled tax returns should be filed precisely, as there may be deficiencies in the reporting. Ultimately, the taxpayer himself is responsible for ensuring that his taxation is comprehensive and correct.

Although the law enters into force from the tax year 2026, Hasa of the Tax Administration urges crypto-investors to take initiative also for previous tax years.

“We are actively investigating how crypto assets are used. We have made requests for information to many foreign crypto platforms.”

So there is a risk of getting caught.

“The easiest way is to report all information and income to taxation on your own initiative.”

Major Finnish crypto service Coinmotion has a positive attitude towards the law reform.

“Although this brings us more reporting and work, we think this is a good thing for the entire crypto industry,” Coinmotion’s head of legal affairs Elias Kajander says.

The regulation of the crypto industry has been increased in the EU and the US in recent years.

“The regulation of the crypto sector is starting to resemble the regulation of the traditional financial sector more and more, which brings credibility and general acceptability to the sector. The regulation of the sector is being developed to protect the customer, which is of course a good thing.”

Taxman published by in December more detailed instructions for the taxation of crypto-assets than before. The instructions specify, among other things, the taxation of crypto investments made with debt leverage or derivative products.

Taxable income can be generated from crypto-assets if cryptocurrencies are exchanged for euros or other crypto-assets. Paying bills and buying goods or services with crypto-assets can also lead to tax consequences.