Denmark has announced that it will become the first country in the world to tax unrealized capital gains on cryptocurrency, with a proposed tax rate of 42%. This tax is set to take effect on January 1, 2026, and will apply not only to cryptocurrencies acquired after this date but also to those obtained as far back as Bitcoin's genesis block in January 2009. The Danish Ministry of Taxation is expected to table a bill formalizing this proposal in January 2026. The new regulations will require Danish citizens to pay taxes on the annual value increases and decreases of their cryptocurrency holdings, regardless of whether they have sold their assets. Approximately 300,000 Danes currently own cryptocurrencies, and the new rules could significantly impact their investment strategies.
