Denmark has just passed an innovative tax reform that promises to generate a lot of discussion, especially among cryptocurrency investors.
The country will be the first in the world to implement a tax on unrealized capital gains on crypto assets, something that should change the way investments in digital currencies are treated.
In short, the plan is: the Danish government will tax projected profits, that is, even before the investor decides to sell his assets and actually realize the profit.
The change, which already has a set date to come into effect — January 1, 2026 — could drastically alter the strategies of those who invest in Bitcoin and other cryptocurrencies.
Although this integration of cryptocurrencies into the tax system is seen as an attempt to treat these assets in a similar way to other traditional investments, there is a rather controversial detail.
Most importantly, the tax will be retroactive to January 3, 2009, the day Bitcoin, the first cryptocurrency, was launched.
Many investors may not be prepared to deal with this new reality, and the measure is likely to encounter resistance.
New tax on cryptocurrencies will be 42%
Denmark’s new tax policy will apply a 42% tax rate to unrealized capital gains from cryptocurrencies. This means that even if an investor does not sell their crypto assets, they will still pay taxes on the gains they have accumulated. The change brings cryptocurrencies in line with the tax rules already applied to traditional investments in the country.
Furthermore, the new tax will affect all digital assets acquired since the creation of Bitcoin in 2009. In other words, anyone who bought BTC when it was worth a mere US$10 and sold it at its peak of almost 74,000 USD will pay the full tax on all profits obtained, without any exemption or deduction.
The measure broadly affects all investors, without exception. Thus, there are already concerns among those who accumulate crypto assets as a form of long-term investment.
In recent years, several Danes who have invested in crypto assets have already been heavily taxed, according to Tax Minister Rasmus Stoklund.
He expressed satisfaction with the recent recommendations of the Fiscal Council, which aim to update and develop more appropriate guidelines for the taxation of gains and losses related to cryptocurrencies.
Ultimately, the idea is to make the process fairer for investors, even though the new rule toughens tax obligations on these assets.
