Benjamin Franklin, a well-known American statesman, said: “Nothing is certain in this world except death and taxes.” It’s a remark that might now hold true to crypto, as Denmark plans to impose a new taxation policy that targets the unrealized capital gains of cryptocurrencies like Bitcoin.

Denmark: Tax Reform For Crypto Assets

The Danish government is about to make a bold move of initiating a pioneering tax reform covering digital assets like Bitcoin.

It is considered as an unprecedented step as the cryptocurrency space has been subject of government regulations in many countries and the ongoing debate on implementing more government regulations and taxation on it.

According to the Danish government, tax authorities will start collecting a 42% tax on cryptocurrencies’ unrealized gains by 2026, on what could be viewed as a forewarning of things that might come for the crypto space.

Under the new tax policy, the Denmark authorities wanted to include Bitcoin and other cryptocurrencies in their existing financial taxation. The unprecedented tax reform will treat cryptocurrencies as investment assets.

Cryptocurrency holders who own digital assets that are not tied to a central bank or backed by a physical asset will have to pay a 42% tax on their unrealized gains.

BTCUSD trading at $67,122 on the 24-hour chart: TradingView.com

Imposing Tax On Crypto Assets In The Future

The Denmark Tax Law Council said in a press statement that all cryptocurrencies must be taxed in the future in accordance with the country’s taxation policies.

The tax authorities explained that the government is already imposing tax on some asset-based crypto-assets so it is only fair to also impose taxation rules on Bitcoin and other ‘non-backed crypto-assets’. A rule, according to the tax council, aligned with the

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Author: Christian Encila