Articles

Blogs

Denmark's Financial Watchdog Denies Plans to Ban Self-Custodial Crypto Wallets

Jul 2, 2024

Denmark's Financial Watchdog Denies Plans to Ban Self-Custodial Crypto Wallets
Denmark's Financial Watchdog Denies Plans to Ban Self-Custodial Crypto Wallets
Denmark's Financial Watchdog Denies Plans to Ban Self-Custodial Crypto Wallets

The Danish Financial Supervisory Authority (DFSA) clarified that it has not proposed banning self-custodial cryptocurrency wallets, contrary to misinformation circulating on social media. In response to recent reports suggesting Denmark was considering a ban on hardware and non-custodial wallets, DFSA's director for fintech, payments services, and governance, Tobias Thygesen, emphasised that such claims are inaccurate. He explained that the exemption of self-custodial wallets from regulation under the Markets in Crypto-Assets (MiCA) framework does not imply any intention to ban them. The DFSA's assessment reaffirmed that MiCA regulations apply primarily to custodial activities involving crypto assets, while fully decentralised services are exempted. Thygesen further clarified that hardware wallets, which do not involve custody of private keys by the wallet provider, are not within MiCA's regulatory scope.