Denmark will introduce a new tax regulation on cryptocurrencies starting January 1, 2026. This regulation will impose a 42% tax on unrealized capital gains. The initiative aims to integrate digital assets like Bitcoin 
$99,148 into the existing financial system’s tax structure, leading to significant adjustments in taxation practices.
Tax Rate and Scope
The new tax regulation will apply a 42% tax rate on all digital assets not backed by physical assets. This tax will also be relevant for decentralized assets like Bitcoin, directly affecting cryptocurrency investors.
The proposed tax policy encompasses investments made since Bitcoin was first traded in 2009. This means that investors will be obligated to pay taxes on value increases, even if they do not sell their assets.
Investors and Regulatory Processes
Starting in 2027, Denmark will begin international data sharing concerning cryptocurrency investors. Additionally, a bill will be introduced at the beginning of 2025, mandating cryptocurrency service providers to report customer transactions.
Tax Minister Rasmus Stoklund stated that the proposed regulations aim to ensure a fairer taxation of crypto gains and losses. “Danish cryptocurrency investors have faced high taxes in recent years. This new regulation could be a step towards establishing a more reasonable tax system,” he said.
The new regulations will also allow investors to balance their cryptocurrency gains and losses. Thus, losses from one crypto asset can offset gains from another.
Denmark’s move parallels Italy’s efforts to tighten tax regulations on digital assets. Italy also plans to raise the crypto capital gains tax from 26% to 42%.
These regulations position Denmark as a pioneering country in cryptocurrency taxation, while requiring investors to adapt to new compliance processes.
