Denmark is preparing to implement a groundbreaking tax overhaul by taxing theoretical profits on cryptocurrencies, starting on January 1, 2026.
The goal is to align virtual assets such as Bitcoin with the taxation of traditional financial assets.
On Wednesday, the Danish Ministry of Taxation proposed a 42% tax rate for unrealized profits from cryptocurrencies acquired since the inception of Bitcoin in January 2009.
Tax Minister Rasmus Stoklund acknowledged that many Danish crypto investors have been subjected to unfair taxation under the current capital gains tax.
He emphasized the need for new regulations to simplify the taxation process for cryptocurrencies.
The proposed changes aim to address the disparity in taxation between gains and losses. Investors will be allowed to offset losses from one crypto asset against gains from another.
