Denmark Introduces Ban on Bitcoin Wallets

The Danish Financial Supervisory Authority (DFSA) is taking steps to eliminate unhosted Bitcoin (BTC) wallets as part of its updated guidelines on decentralized funding (DeFi).

The DFSA’s new position requires all crypto service providers, including interface and mobile app developers, to operate under strict regulations. This is in line with the upcoming Cryptoasset Market Regulations (MiCA), which will soon be partially implemented across the European Union.

With these changes, crypto exchanges and trading platforms will no longer be able to offer Bitcoin wallets, DEX interfaces or other crypto-related services to Danish users unless they receive regulatory approval in Denmark.

The European Banking Authority (EBA) recently finalized technical standards under MiCA, ensuring that EU firms meet strict financial requirements.

These include own funds adjustments, liquidity provisions and strict recovery plans for crypto issuers, with significant implications for stablecoins pegged to the US dollar.

Some market analysts argue that these new regulations are overly restrictive. Mikko Ohtamaa, who reported on the ban in question in Denmark, suggested that MiCA’s rules may be aimed at phasing out digital assets, a view echoed by SEC Chairman Gary Gensler. Ohtamaa believes that these rules could effectively ban cryptocurrencies by imposing excessive controls.