Denmark Plans Tax on Unrealized Crypto Gains
Denmark’s Tax Law Council has recommended implementing a mark-to-market taxation system for cryptocurrencies in a recent report, with plans for a legislative proposal to follow.
The council aims to address discrepancies in how gains and losses are taxed, meaning investors would face taxes on unrealized gains or losses if the rules are enacted.
This mark-to-market approach would classify these gains as capital income, leading to continuous taxation regardless of whether assets are sold.
Highlighting the complexities of taxing decentralized cryptocurrencies, the council proposed that the new regulations should take effect no earlier than January 1, 2026.
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The Minister of Taxation plans to introduce a bill in early 2025 that will require crypto service providers to report client transaction details.
Senior crypto analyst Mads Eberhardt estimated that the tax on unrealized capital gains could reach 42%, impacting not only new acquisitions but also assets obtained since Bitcoin’s launch in January 2009. He remarked, “The gloves are off. This is a war on crypto.”
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
