Denmark is moving forward with proposals for new tax regulations that could significantly affect cryptocurrency investors as early as 2026. The Danish Tax Law Council has put forth a plan to tax unrealized gains and losses on crypto assets, meaning investors could be liable for taxes based on the value of their holdings, regardless of whether they have sold them.
In a comprehensive 93-page report, the Council presented three potential models for taxing cryptocurrencies: capital gains tax, warehouse taxation, and inventory taxation. Among these, the “inventory taxation” model appears to be the frontrunner, which would classify an investor’s entire cryptocurrency portfolio as one “inventory,” subjecting it to annual taxation irrespective of sales.
Danish Tax Minister Rasmus Stoklund remarked that current tax regulations often seem inequitable for crypto investors, and the new framework aims to streamline the taxation process. However, it’s important to note that these recommendations are not yet laws and are still under consideration.
Additionally, the proposal includes requirements for crypto service providers, such as exchanges, to report user transactions to all EU countries. Stoklund confirmed that the Danish Parliament plans to discuss this bill in 2025, with the earliest implementation date projected for January 2026.
This potential tax initiative aligns with similar global movements. In the United States, Vice President Kamala Harris has endorsed a tax on unsold assets, while Italy is contemplating increasing taxes on Bitcoin holdings.
If enacted, Denmark’s new tax regulations could have profound implications for cryptocurrency investors, sparking concern within the crypto community, which has labeled the proposal a punitive measure against digital assets.
Related topics:
Bitcoin Approaches $70,000 Amidst Rising Optimism Ahead of U.S. Elections
CoinSwitch Accuses WazirX of Moving $75 Million in User Funds Post-Hack
CoinGecko Launches First Hybrid Web3 Gaming Conference in Bangkok
