Crypto In Finland

Oct 24, 2022
7 min read

This blog post will cover:

  • Is crypto legal in Finland? 
  • Crypto taxes in Finland
  • Capital Gain Tax
  • Income Tax
  • Crypto projects and use cases 
  • Conclusion

Crypto adoption is on the rise all over the globe. Both retail and institutional are jumping on board, and ever more governments around the world are finally opening up to the blockchain revolution. Today we’ll be exploring how crypto is regulated and taxed and what it brings to the table in the strong Finnish economy. So let’s get into it!

Is crypto legal in Finland? 

Yes, cryptocurrencies are legal in this country. The Finnish state regulates crypto via the Virtual Currency Act. According to the law crypto assets are defined as a value in digital form that:

  • No central bank or any other public authority issues and backs.
  • Isn’t a legal tender meaning not legally the same as fiat, but it is allowed to be used as a means of exchange.
  • Might be exchanged electronically via the blockchain.

The act regulates all cryptocurrencies with the same methodology, making no distinction between different types of digital assets such as well-established Bitcoin and Ethereum, non-volatile stablecoins, and smaller emerging altcoins.  

Furthermore, the Virtual Currency Act also provides no further guidance or clarification on terms such as “means of payment”. Some crypto may therefore not fall into the regulated category. In some cases, it’s up to regulators to analyze it case to case. 

The uncertainty around some aspects of the Virtual Currency Act may leave some investors confused about whether or not their digital assets fall into the category. 

Crypto taxes in Finland

Profits from operations with crypto are taxed differently depending on the type. Let’s take a look at them. 

Capital Gain Tax

Cryptocurrency trading gains received when selling your digital assets are under Finnish law treated as capital income and therefore taxed under capital gains taxes. 

The capital gain tax is incurred every time you profit from a sale of crypto. In Finland, the volume due on each sale depends on your wealth bracket. Capital gains are generally incurred with a 30% tax rate for any number up to $30,000, and 34% for any amount outstripping it. So anything from 30% to 34% of your total crypto profits will have to go to the capital income tax.

Income Tax

Alongside the capital gain tax, any income generated via cryptocurrency will be taxed as income. These apply to income generated when paid in crypto or mining, for example.

Like most Nordic countries, Finland has a progressive tax system. The higher your total taxable income the higher your income tax rate. Or in other words, the rich pay a higher percentage of their total earnings than the poor.

Finland has various kinds of individual income tax. The largest interest, the national income tax, allows for tax-free income for any amount under $19,000. If however, your revenue is above the threshold you’ll be taxed from 6% to 31.25%.

Furthermore, the municipal tax is a flat tax, it’s not a progressive one. The rate ranges from 16.5% to 23.5% depending on the municipality you are a resident of. 

Crypto projects and use cases 

In a solid economy like Finland has, crypto presents many beneficial use cases — not having to rely on a middleman when transacting would cut costs as well as make sending money a lot quicker than with a bank. Additionally, Finnish citizens could also benefit from the development of new sectors such as cryptocurrency mining in the country, creating new wealth and opportunities. 

Also, cryptocurrency being acknowledged and regulated by the Finnish government makes the country an attractive place for upcoming crypto projects. For example, an interesting new Web3 startup called Kleoverse made headlines for creating a blockchain that integrates with the needs of freelancers and lets them create virtual identities. Instead of relying on the old-fashioned CV, Kleoverse uses the NFT-based proof-of-talent system that allows freelancers to be viewed based on their work within the network.

Probably you have exchanged BTC to AAVE or visited the official website of this project? There you can notice a logo with a phantom. The trick is that even though the project is not originally from Finland, but its name is inspired by the Finnish language — "aave" is translated as ghost! 

We will surely tell you about more new projects from Finland as they come, whilst you can get acquainted with other popular Web 3.0 concepts from all over the world.


Crypto presents a huge opportunity for Finland as the technical infrastructure needed — quick internet and cell phones, which already work correctly. Furthermore, the regulatory framework put in place by the Finnish government shows the positive view of politicians towards crypto. A lot still needs to be done before full crypto adoption in Finland, but the Virtual Currency Act may not be perfect, and it is without a doubt a step in the right direction. 

To stay tuned, read more articles on cryptocurrency regulation in different countries. Explore Germany, South Korea, Brazil, UAE, Australia, Nigeria, Mexico, India, Russia, Vietnam, USA, Switzerland and Portugal with SimpleSwap Blog!

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