Key Takeaways:
- 100,000 Finns failed to report crypto profits in 2024.
- Only 10% of crypto transactions are currently declared.
- OECD’s CARF framework will tighten reporting from 2026.
- Finland aims to boost tax transparency and enforcement.
Finland Cracks Down on Unreported Crypto Gains
Finland’s tax authority, Verohallinto, is intensifying its oversight of cryptocurrency transactions as thousands of investors fail to disclose their crypto income. Despite a record year for tax declarations, officials estimate that over 100,000 Finns neglected to report crypto profits in 2024.
This move follows growing concern over widespread underreporting, with the Finnish government preparing to adopt the OECD’s Crypto-Asset Reporting Framework (CARF) to boost transparency and ensure fair taxation.
Only 10% of Crypto Trades Are Reported
According to Finnish media outlet Yle, around 18,000 taxpayers declared crypto income last year, generating €225 million in capital gains and paying about €68 million in taxes. However, that represents just a fraction of total activity — authorities estimate that only 10% of trades are currently reported.
Also Read : Crypto Crashes $340B: Is Bitcoin’s Rally Dead or Just Paused?
Senior tax advisor Juho Hasa noted that this low compliance rate has persisted for years, despite a significant rise in crypto ownership. About 450,000 Finns — nearly 8% of the population — hold some form of digital asset such as Bitcoin (BTC) or Ethereum (ETH).
Verohallinto can already request transaction data from crypto exchanges and service providers, but upcoming regulations will make it easier to track profits and detect evasion.
New OECD Framework to Reshape Crypto Taxation
To close existing gaps, Finland will adopt the Crypto-Asset Reporting Framework in early 2026. The system will require crypto service providers to collect and share detailed information on user transactions with tax authorities, ensuring cross-border transparency among more than 70 participating nations.
Also Read: Top 10 Crypto Tax Tools for 2025
This marks a major shift for investors. Under CARF, crypto platforms will report user data automatically, potentially leading to pre-filled tax forms that reflect digital asset profits. Authorities expect thousands of taxpayers to be “surprised” when these changes take effect.
Stronger Enforcement and Rising Compliance
Verohallinto has filed around 200 criminal reports related to undeclared crypto income in the past three years — a number expected to grow sharply. Officials warn that failure to report crypto gains can result in steep penalties or even criminal prosecution.
As CARF takes hold in 2026, Finland’s move is set to become a model for stricter global crypto compliance. For investors, the message is clear: crypto profits will no longer fly under the radar.
