Cryptocurrency trading has gained significant traction in Sweden, marking a remarkable change. Yesterday (May 14th), the Swedish Tax Agency (Skatteverket) published a report highlighting several encouraging trends and statistics about the increasing use of cryptocurrencies in the country.

Sweden's Crypto Market Expands: Number of Traders Doubles

A Growing Market

One of the standout findings from the Skatteverket report is the significant increase in the number of Swedes engaging in crypto trading. According to the report, the number of Swedes trading cryptocurrencies doubled between 2021 and 2022, rising from 270,000 to 540,000.

The report further reveals that approximately 10% of the Swedish population traded cryptocurrencies in 2022. This statistic underscores the widespread acceptance and growing popularity of crypto assets in Sweden, reflecting a broader global trend towards digital finance.

Bitcoin and Ethereum Lead the Way

Among the various cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) emerged as the most traded and profitable digital assets. Bitcoin accounted for 8% of all trades, 16% of total sales value, and an impressive 43% of total profits. Ethereum also showed strong performance, representing 7% of trades, 11% of sales value, and 23% of profits.

Increased Tax Declarations

The number of Swedes declaring their crypto transactions has also seen a substantial rise. From just 120 individuals annually between 2013 and 2016, the number surged to over 8,000 in 2021. This increase not only reflects the growing participation in crypto trading but also an improved understanding of the importance of complying with tax regulations. While the report acknowledges some challenges, such as the complexity of crypto taxation, it also calls for simplified regulations to facilitate better compliance. This approach could further boost the positive trend and ensure that more Swedes can easily navigate the crypto tax landscape.

The findings from Skatteverket's report paint a promising picture of the crypto market in Sweden. With a significant portion of the population engaging in crypto trading and notable increases in declared transactions, Sweden is on its way to becoming a key player in the global cryptocurrency ecosystem. As regulatory frameworks evolve to support this growth, the future of crypto trading in Sweden looks brighter than ever.