Denmark Intends to Tax Unrealized Crypto Gains

Reading Time: < 1 minute

The Danish Tax Law Council has proposed a mark-to-market taxation method for cryptocurrency assets in a recent report. Their suggestion will soon be followed by a legislative proposal.

In an official statement, the council announced that their objective is to achieve a more balanced approach to taxing gains and losses.

This means that if the rules are implemented, cryptocurrency investors will be taxed on their unrealized gains or losses.

The council clarified that this tax method, known as mark-to-market taxation, falls under capital income and involves continuous taxation, regardless of whether the crypto assets are sold.

This form of taxation typically refers to levying taxes on yearly changes in the value of certain assets.