The Danish Tax Agency proposed a bill to introduce a tax on unrealized profits from crypto-assets from 2026. The initiative aims to improve the regulation of cryptocurrencies in the country and create fairer rules for investors.
The Danish Tax Agency submitted a report on cryptocurrency taxation, recommending that all digital assets be taxed under the same rules.
Specifically, the regulator considered three possible taxation models:
- capital gains tax;
- warehouse taxation;
- inventory taxation.
The latter model, according to the report, is the preferred model and involves taxing all assets in an investor’s portfolio annually, regardless of whether they are sold. This means that cryptocurrency owners in Denmark will pay tax on their assets, even if they have not sold them during the year.
Rasmus Stoklund, Denmark’s Minister for Taxation, said that the current tax rules result in unfair taxation for many crypto investors. He also stressed that the new rules should be simpler and more efficient for all market participants.
The new requirements also include the mandatory provision by cryptocurrency exchanges and payment providers of their users’ transaction data. This data will be available not only to Denmark, but also to all countries in the European Union.
Despite the recommendations, the bill won’t be introduced to parliament until 2025 and, if passed, will not come into force until 2026 at the earliest. Its fate will depend on parliamentary debate and final approval by local authorities.
Global regulators are actively tightening tax controls on cryptocurrency assets. In Japan, for example, there are taxes on staking and crypto lending, Australia introduced a tax on profits from wrapped tokens, and Thailand, Brazil, and Portugal are also planning to make changes to the taxation of cryptocurrency income.
