The council’s 93-page report argues that unrealized gains and losses of crypto assets should be taxed, recommending that the same rules apply to all of these assets. This proposal, which may particularly affect Danish crypto investors, was presented with the aim of making the tax system in the country more consistent and fair.

The report evaluated three main models for taxing crypto assets: capital gains tax, warehouse tax and inventory tax. Danish Tax Minister Rasmus Stoklund emphasized that the current capital gains tax approach creates injustice for crypto investors.

Stoklund stated that the new tax rules should find a “simpler” and fairer path for crypto assets.

Inventory tax stands out especially among the proposed models. In this model, an investor’s entire portfolio is treated as a single “inventory” and taxed on a set date each year, regardless of whether the assets are sold.

The Tax Law Council proposes this model to tax capital income and argues that crypto assets should be treated in the same way as other financial assets such as stocks and bonds.

This means Danish crypto investors may have to pay taxes on unrealized gains and losses.

However, it is necessary to be careful that these suggestions do not necessarily mean that they will become law. Some users on social media misinterpreted the report and claimed that these tax changes were final.

However, the recommendations of the Tax Law Council will be evaluated by the Danish Parliament and will come into force if approved.

Minister Stoklund stated that there is a need for clearer and more appropriate rules on this issue and said that he looked forward to discussing the proposed bill with members of parliament.

Another key recommendation of the report is that cryptoasset service providers—such as crypto exchanges and crypto payment firms—should report information about their customers’ transactions.

This reporting can be arranged to be accessible to all European Union countries. This proposal aims to increase supervision of crypto assets and ensure tax compliance.

The new tax bill is scheduled to be introduced to the Danish Parliament at the beginning of 2025, and the Tax Law Council recommends that these rules come into force on January 1, 2026 at the earliest. However, it is not yet clear how retroactively these rules will apply to existing crypto assets.

This proposal from Denmark can be considered as part of similar initiatives in other countries. For example, in the US, Democratic presidential candidate Kamala Harris has proposed a 25% tax on unsold assets.

Italy also plans to increase capital gains tax on Bitcoin assets from 26% to 42% from 2025. All these steps indicate that stricter regulations are coming in the taxation of both crypto and traditional financial assets on a global scale.

Denmark’s tax proposals on crypto assets present significant changes that could impact crypto investors in the country and are seen as part of a global trend.