Denmark is set to roll out a substantial tax law regarding cryptocurrency assets, effective January 1, 2026. This new regulation mandates a 42% tax on unrealized capital gains, an initiative designed to incorporate digital currencies such as Bitcoin into the nation’s tax framework, resulting in significant changes to how these assets are taxed.
What Will the Tax Cover?
The forthcoming tax will apply to all digital assets that are not tied to physical assets. This includes decentralized currencies like Bitcoin, impacting a wide range of cryptocurrency stakeholders.
How Will Data Sharing Work?
Beginning in 2027, Denmark plans to initiate international data sharing for cryptocurrency holders. In addition, a legislative proposal will be introduced in early 2025, which will require crypto service providers to track and report customer transactions.
Tax Minister Rasmus Stoklund emphasized that these regulations are intended to create a more equitable tax system for cryptocurrency gains and losses. Key points include:
- A 42% tax rate on unrealized gains.
- Tax liabilities apply from the inception of Bitcoin trading in 2009.
- Losses can offset gains across different cryptocurrencies.
Denmark’s initiative mirrors Italy’s move to tighten regulations on digital assets, as both countries aim to standardize their approaches to cryptocurrency taxation. This policy shift positions Denmark at the forefront of cryptocurrency tax regulation, compelling investors to adapt to new compliance mandates.