Denmark May Introduce Tax on Unrealized Cryptocurrency Gains

Denmark is taking a pioneering step towards implementing a tax reform that would involve taxing unrealized capital gains on cryptocurrencies starting from January 1, 2026.

This unprecedented move aims to integrate digital currencies like Bitcoin into the already established financial taxation system, treating them similarly to other investments.

This bold decision comes Tax Law Council recommended that the tax should apply to future acquisitions as well as cryptos acquired since the inception of Bitcoin in January 2009.

According to reports, the tax will be set at 42% for all unrealized capital gains on crypto assets, including Bitcoin, which is not backed by any physical assets or Fiat currencies.

This aligns with the government’s goal to bring digital assets under the same taxation guidelines as traditional investments.