The Danish government is advancing a significant proposal to tax crypto assets such as Bitcoin, with tax rates potentially reaching up to 42%. Notably, the tax would apply not only to realized profits but also to unrealized gains on crypto assets. This means investors would have to pay taxes on their entire crypto portfolio, regardless of whether they sell their assets or not.
This proposed law is expected to take effect on January 1, 2026, and would apply to assets purchased as far back as 2009. Under the plan, all crypto assets held by investors will be valued annually at a fixed date, with taxes levied based on the market value at that time.
Additionally, financial service providers will be required to report their clients’ crypto transactions. This measure is aimed at improving the government’s oversight of crypto activity and preventing tax evasion within the crypto community, which currently includes more than 300,000 Danish citizens.
The bill is slated for discussion in Parliament in 2025. If passed, this would be one of the highest crypto tax rates in the world, potentially reshaping how investors approach the crypto market in the future.
