Denmark’s Tax Law Council has put forth a proposal to tax unrealized gains and losses on cryptocurrency assets in the same way that it taxes stocks and bonds.
What Happened: The council’s comprehensive 93-page report suggested that all cryptocurrency assets should be taxed under a uniform set of rules, according to a Cointelegraph report on Wednesday.
The report favored an “inventory taxation” method, which considers an investor’s entire portfolio as a single inventory to be taxed by a specific date each year, irrespective of whether the assets have been sold or not. Under this model, cryptocurrencies would be taxed alongside other financial assets like stocks and bonds
The new bill is anticipated to be presented to the Danish Parliament in early 2025, with the Tax Law Council suggesting that the rules should not be implemented until Jan. 1, 2026, at the earliest.
Taking a dig at the development, renowned economist Tyler Cowen wrote on X, “Let’s hope Satoshi isn’t Danish.”
For those unaware, Bitcoin BTC/USD creator Satoshi Nakamoto is believed to be the largest individual holder of the cryptocurrency, having had over a million coins since the early days of the asset.
Why It Matters: This proposal was part of a larger trend of jurisdictions tightening taxes on cryptocurrencies.
Earlier this month, Italy’s government announced plans to increase capital gains taxes on Bitcoin and other assets from 26% to 42% in 2025. This move was justified as a necessary measure to address budget shortfalls.
Another big market, India, which has consistently fared high on cryptocurrency adoption, currently imposes a 30% tax on gains from selling cryptocurrencies.
On the brighter side, the UAE administration exempted cryptocurrency transactions from value-added tax (VAT), earning praise from top names in the cryptocurrency space.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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