March 31, 2023

Denmark to impose tax on profits from BTC sales

  • This is the decision of the Supreme Court
  • Capital gains tax will be paid by both traders and miners
  • The decision was taken in view of the speculative nature of BTC

Yesterday, 30 March, the Supreme Court in Copenhagen ruled that profits from the sale of bitcoins bought or mined are taxable. The decision was taken in view of the speculative nature of the cryptocurrency.

"The court's position is that BTC is generally bought solely for the purpose of sale and much less frequently as a means of payment," the trial announced.

Denmark is notable for its rather strict tax laws. For example, those who earn up to 58.9 thousand kronor ($8630) must pay 27% to the treasury as a capital gains tax.

Those with incomes above this level already pay 42%. For a long time, cryptocurrency has been a kind of "blank spot" in the Code. Transactions in it were not taxed, which spurred the level of adoption in the country.

Much of this decision by the Supreme Court is explained by the regulator's stance. Danish Central Bank Governor Lars Rohde is almost hostile to BTC. For example, in 2021 he stated the following:

"Even in the most optimistic scenario, it is just another speculative asset. There is no guarantee or stability for cryptocurrencies".

His position is shared by his colleagues at the UK central bank and the ECB. And, of course, this has a certain impact on their policies and decisions. Earlier we reported that members of the cryptocurrency community used a projector to place a huge BTC logo on the ECB building. In this way, they are calling for the exploration of digital assets rather than mindlessly restricting them.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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