Denmark is preparing to propose a bill in 2025 that would tax unrealized gains from cryptocurrency investments. The country’s Tax Law Council has recommended “mark-to-market” taxation for crypto assets, which would tax investors on the annual value changes of their assets, even if they haven't sold them.
Aiming to Address Taxation Challenges
The council’s recommendation aims to resolve what it calls the asymmetry in taxing gains and losses in the crypto space. By implementing mark-to-market taxation, the council intends to treat crypto as capital income. The proposed changes would affect investors from as early as January 2026 if approved.Potential Impact
Crypto analyst Mads Eberhardt noted that the new tax could be as high as 42%, applying to all assets acquired since Bitcoin’s inception in 2009. This proposal could significantly impact crypto holders in Denmark, creating a more stringent tax environment for digital assets. The upcoming bill will also require crypto service providers to report clients’ transactions, increasing transparency and compliance within the country’s growing crypto market.
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