Denmark consider taxing unrealized gain on bitcoin.

[MeGold666]

I'm 100% sure that everyone in Denmark is going to declare his crypto holdings to the authorities. There's no doubt about that.

They will, ...

The problem is that the government already knows how much Bitcoin you hold, as the majority of it is acquired through KYC exchanges.
Unlike Monero, you can’t simply claim you lost it in a ‘boating accident’ - Bitcoin is easily traceable. If you say you've lost access to your Bitcoin, they could simply blacklist it and prosecute anyone who tries to use it and ban you from exchanges.

...Bitcoin holders are clever; they’ll find ways to protect their privacy and make sure they’re not flagged for breaking any laws.

All clever ones switched to Monero long time ago.

[stompix]

I'm 100% sure that everyone in Denmark is going to declare his crypto holdings to the authorities. There's no doubt about that.

They will, ...

The problem is that the government already knows how much Bitcoin you hold, as the majority of it is acquired through KYC exchanges.
Unlike Monero, you can’t simply claim you lost it in a ‘boating accident’ - Bitcoin is easily traceable. If you say you've lost access to your Bitcoin, they could simply blacklist it and prosecute anyone who tries to use it and ban you from exchanges.

And, what are you going to do with your Monero? 
Let's see the options:
- sell it, taxable registered event
- buy stuff with it, taxable registered event
- go to a country where is not taxable, thing you can do with Bitcoin
- print a piece of paper with your key and the words "I'm rich" and take it to your grave

You sound like one of those guys who is so happy he can pay for stuff with cryptocurrency anonymously then goes on to type his whole name and address in the delivery address and the warranty certificate. 
Also, these gains in Monero which the government would tax you on, are they in the same room as us now?

[MeGold666]

And, what are you going to do with your Monero?  
Let's see the options:
- sell it, taxable registered event
- buy stuff with it, taxable registered event
- go to a country where is not taxable, thing you can do with Bitcoin
- print a piece of paper with your key and the words "I'm rich" and take it to your grave

You sound like one of those guys who is so happy he can pay for stuff with cryptocurrency anonymously then goes on to type his whole name and address in the delivery address and the warranty certificate.  
Also, these gains in Monero which the government would tax you on, are they in the same room as us now?

YES, I pay taxes when I sell my Monero, but I refuse to pay taxes on the Monero I hold.

Do you see the difference? 

I have too much money in crypto to have it visible to the government.

/Over&Out

[non fungible anxiety]

Didnt the US planned to do the same thing? This is probably a global effort and we will see more western countries adopt this crazy tax system which i'm sure the only purpose is to destroy any chance to make money at all.

[mirakal]

It’s pretty simple—Denmark discourages people from holding bitcoin, and if you do, they’ll tax you in whatever way they choose. It’s tough to accept, but once the government imposes something like this, there’s nothing we can do except comply, or they’ll forcefully take it from us. In the end, we holders are the ones left at a disadvantage, the ones who have to sacrifice.

I’m not saying I’m against taxing cryptocurrency, but it should be at a fair rate, one that’s reasonable for everyone, rather than something we’re stuck with because we have no choice. Hopefully, other countries don’t follow this path—otherwise, it could be why people turn away from bitcoin altogether.

[crwth]

This would be on Bitcoin exchanges registered in their country right now because I don’t know if it could be considered if it is just within your wallet. I’m not that familiar yet with the bill that they are trying to propose. I would still consider the part where you converted into Fiat, and then that’s where you would tax it.

[Plaguedeath]

Yeah indeed, so how about we do something like this:
- everyone who hates the Western world stays in their shithole country and stops coming in millions here
- every European that hates this goes to the shitty countries that they fancy
- as per above other countries manage to get as liveable and as appreciated as Denmark, good luck with this

I think there are so many rich people here, that's why people are complain how high the tax in Western countries.

Poor and middle class people don't mind to pay tax because it won't make them poor, they can still live comfortable compared to living in third world countries. Since the rich gets richer, it's why they want to implement more tax and increase the tax rate.

But, I'm sure they will try to find a loophole to pay less tax.

[Cryptomultiplier]

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax...

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

If the Denmark government decides to go ahead with such a policy, am sure many individuals wouldn't agree to invest in Bitcoin, because the tax is just too outrageous to be frank.

If a country like the UAE has opted to not tax Bitcoin and other crypto currencies because it wants to be one of the largest investors in cryptocurrency, thereby boosting its economy and improving the standard of living by owning mining farms as well, am sure other countries can do same if they know the advantages of allowing crypto currency and Bitcoin in particular to be a main stay financial component of its economy.

[headingnorth]

Just goes to show how western governments are run by complete morons.

Yeah indeed, so how about we do something like this:
- everyone who hates the Western world stays in their shithole country and stops coming in millions here
- every European that hates this goes to the shitty countries that they fancy
- as per above other countries manage to get as liveable and as appreciated as Denmark, good luck with this

Denmark is the No. 1 country for quality of life
Stupid government, right, what do they know about running a country, they should read posts on Bitcointalk for advice!

And again we have a shitty article about someone who translated the proposal with google translate and never bother to read the essential stuff, that all the tax models will be calculated IF the taxpayer does not disclose his income and doesn't fill his tax statements with his crypto holdings.

Can't wait till they realize how stupid they are and have failed for another hoax, remember this scaremongering:
No, Denmark did not propose banning self-custody wallets

 

Western govts may have been run more competently in the past, but that doesn't mean that they are still being competently run today.

For example the EU and US are running massive deficits. In order to fund these incredible deficits they are printing money like there is no tomorrow. Greater poverty and rampant inflation is the result. People simply cant afford to live in the west anymore and in fact large numbers of westerners are moving to more affordable "3rd world" countries.

Western govts are spending money like drunken teenagers binging on their parents credit cards. That is not a responsible way to manage your personal finances, let alone that of an entire country's economy. If it were any third world country doing that it would be described as out of control fiscal mismanagement and corruption. These deficits are unsustainable and will lead to economic collapse sooner or later.

[cryptocoupons]

This new proposed bill sounds wild. It would mean holders have to declare their assets and pay taxes on any increase in value from their original purchase, even on unrealized gains. So, even if you’re just holding, you’d have to report it every year.

Now, if the value drops, sure, maybe you’d pay lower taxes or get a tax offset, but it’s still odd. Think about it: you buy Bitcoin at $10,000, and over the next five years, it rises, so you’re paying annual taxes based on that value increase. But then, if the price tanks overnight and you sell in a panic, you’re at a loss - yet the government’s already pocketed tax from your unrealized gains.

And look at the percentage of tax...

Similarly, the Italian government mulled raising the capital gains tax specifically for Bitcoin holdings from 26% to 42% beginning in 2025.

You’re paying yearly taxes on that gain without selling a thing. But if the market crashes and you sell at a loss, the government’s already collected on your past 'gains.' And Italy considering a 42% capital gains tax on Bitcoin? Ouch.

[pooya87]

If a country like the UAE has opted to not tax Bitcoin and other crypto currencies because it wants to be one of the largest investors in cryptocurrency, thereby boosting its economy and improving the standard of living by owning mining farms as well, am sure other countries can do same if they know the advantages of allowing crypto currency and Bitcoin in particular to be a main stay financial component of its economy.

It is a bad comparison because UAE is not exactly a country. It is more like a gas station. It is an artificial colony created about 50 years ago (so the tree in my backyard is older) so that the West has control over some gas and oil fields.

Unlike Denmark the UAE regime's budget doesn't really rely on taxes. It relies on the fossil fuel they cheaply extract out of the earth and sell. Which is why they can afford to not-tax bitcoin related stuff.
Also unlike Denmark, UAE is a dictatorship so the quality of life of the small ~1-2 mil population of it does not matter (note that the rest of the 8-9 mil are foreign workers that are only there to work and send the money back home).

[Free Market Capitalist]

Guys who didn't read the article:

They will also issue credits on unrealized losses, too.

So if you buy a shitcoin and it suddenly dumps by 90%, you can actually get money back on that.

It's a stupid idea though that's going to hurt HODLers and help crypto traders.

As stupid as the fact that you will have to file a tax return between May 1 and July 1, 2026, regarding your 2025 holdings and it may be the case that you have a profit of DKK 1 million on December 31, 2025 but by that time in 2026, your investment has fallen by 90% and you have not enough to pay the taxes with even if you sell everything. In the end, what this encourages, as you say, is for people to sell more and be less of a holder.

[lovesmayfamilis]

What is noteworthy is that the new bill can only come into force on January 1, 2026, but people will have to pay the new tax regardless of the year in which the bitcoin was purchased, including January 2009. However, for now, this all looks like recommendations for the taxation of cryptocurrencies. And for this bill to be fully approved, it is necessary to receive permission from the Danish parliament. However, as the Minister of Taxes and Duties of Denmark Rasmus Stoklund, recommended: " it is necessary to carefully recheck everything and make the tax in a "simpler" display, since today's projection is very unfair."

[pakhitheboss]

What is noteworthy is that the new bill can only come into force on January 1, 2026, but people will have to pay the new tax regardless of the year in which the bitcoin was purchased, including January 2009.

However, if this bill is approved by parliament and goes into effect in 2026, I dislike the part that states anyone who bought Bitcoin in the past will have to pay taxes from that date. They are in simple words discouraging their citizens from investing in Bitcoin through this new tax bill. I am only imagining how much tax a person has to pay only for holding Bitcoin from 2011 to date looking at the current value of Bitcoin, the amount might go in millions of dollars. I do not think the parliament would be going ahead and passing this bill under the current status. There will be amendments that have to be made to make this tax bill easier for those who have been investing in Bitcoin.

[Maslate]

What is noteworthy is that the new bill can only come into force on January 1, 2026, but people will have to pay the new tax regardless of the year in which the bitcoin was purchased, including January 2009.

However, if this bill is approved by parliament and goes into effect in 2026, I dislike the part that states anyone who bought Bitcoin in the past will have to pay taxes from that date. They are in simple words discouraging their citizens from investing in Bitcoin through this new tax bill. I am only imagining how much tax a person has to pay only for holding Bitcoin from 2011 to date looking at the current value of Bitcoin, the amount might go in millions of dollars. I do not think the parliament would be going ahead and passing this bill under the current status. There will be amendments that have to be made to make this tax bill easier for those who have been investing in Bitcoin.

As written in the report,

The report appeared to lean toward recommending a method called “inventory taxation,” which treats an investor’s entire portfolio as a single “inventory” to be taxed by a certain date each year, regardless of whether or not the assets have been sold by that time.

To make things easier to understand, think of your holdings as inventory assets. This includes any assets you bought before they became effective, as long as they’re still in your portfolio. You don’t need to pay taxes on past gains because the reference point is the summary of Bitcoin purchases at the time of buying and their purchase price.

When there’s a cutoff for computation, like next year on November 30, 2025, if the base price (ending price) is $100k, you’ll just need to figure out your profit (current price minus purchase price), and that amount will be taxable based on the percentage they decide. As for the following years, I’m not sure how it’ll be calculated, so we’ll just have to wait for the guidelines if this proposal gets approved.

[stompix]

Western govts may have been run more competently in the past, but that doesn't mean that they are still being competently run today.
For example the EU and US are running massive deficits. In order to fund these incredible deficits they are printing money like there is no tomorrow.

I love it when a random guy makes such statements like he knows the truth when a simple Google search a toddler could do would prove him wrong!

Denmark had a budget surplus totalling 92.7 billion kroner in 2023, equivalent to 3.3 percent of the country’s GDP. The Statistics Denmark report is based on a review of state finances throughout the EU.

Denmark is running a budget surplus, and even if the other countries in the EU don't the EU debt to GDP ratio is going down:



But always funny to see people in failed countries telling us how to run our countries! 

YES, I pay taxes when I sell my Monero, but I refuse to pay taxes on the Monero I hold.
Do you see the difference? 

Again, what taxes would you have paid on your Monero since for the last 4 years you would have had only losses?
Get over it, nobody cares about privacy or anything else anymore, privacy coins are going to die if they don't find a way to attract money and people are more interested in making x10 on meme coins than in their privacy! So keep dreaming!

[MeGold666]

Again, what taxes would you have paid on your Monero since for the last 4 years you would have had only losses?
Get over it, nobody cares about privacy or anything else anymore, privacy coins are going to die if they don't find a way to attract money and people are more interested in making x10 on meme coins than in their privacy! So keep dreaming!

You still don't understand... privacy is a nice bonus, but it's more about scalability on Layer 1.

I agree that if your goal is to become rich, Monero might not be perfect for you. However, it's ideal if you're already wealthy and simply want to protect your assets from government scrutiny, as I explained in my other posts.

At this point, I'm just repeating myself; I don't have anything more to add other than wishing you good luck with whichever path you choose.

To me, being transparent with the government and lacking scalability on Layer 1 isn't the right approach.

Cheers!

/Over&Out.

[headingnorth]

Western govts may have been run more competently in the past, but that doesn't mean that they are still being competently run today.
For example the EU and US are running massive deficits. In order to fund these incredible deficits they are printing money like there is no tomorrow.

I love it when a random guy makes such statements like he knows the truth when a simple Google search a toddler could do would prove him wrong!

Denmark had a budget surplus totalling 92.7 billion kroner in 2023, equivalent to 3.3 percent of the country’s GDP. The Statistics Denmark report is based on a review of state finances throughout the EU.

Denmark is running a budget surplus, and even if the other countries in the EU don't the EU debt to GDP ratio is going down:



But always funny to see people in failed countries telling us how to run our countries!  

YES, I pay taxes when I sell my Monero, but I refuse to pay taxes on the Monero I hold.
Do you see the difference?  

Again, what taxes would you have paid on your Monero since for the last 4 years you would have had only losses?
Get over it, nobody cares about privacy or anything else anymore, privacy coins are going to die if they don't find a way to attract money and people are more interested in making x10 on meme coins than in their privacy! So keep dreaming!

A toddler would understand that the idea of taxing unrealized gains is beyond idiotic.

Since you can't justify such idiocy, you bring up random crap that has nothing to do with the discussion at hand in an attempt to hijack the thread. Grow up.

[kryptqnick]

Hm, taxing unrealized gain does seem problematic. It doesn't seem to be a common practice with cryptos. If it's capital gain tax, it makes sense that people pay it when profiting. If it's property tax, then people might declare their crypto holdings once, pay the tax and be done with it. That, of course, depends on a country and its laws around cryptos. That being said, it's only a bill, so it doesn't mean it will actually become the law.

[mindrust]

Just goes to show how western governments are run by complete morons.

Communism poisoning I'd say. They want to do the same thing in the US too. If the US voters have any sense left in them, they won't elect the communist candidate in November. Communism is a disease. Russians tasted it before, they got rid of it. I don't understand why the Europoors like it that much.

Some of them are already taxing unrealized gains on assets whether it is bitcoin or not. Why would anybody want to live in a shithole like that... Sigh... Not my problem, if the Danish people are happy with it, good for them. Tax them even more. Increase it to 99% so they will have the maximum pleasure.


https://www.independent.co.uk/news/world/americas/us-politics/trump-economy-policies-federal-tax-plan-eliminate-b2635208.html

Similarly, in June, Trump suggested that federal income taxes be replaced by funds obtained via tariffs, something he has not explained further.

^

I don't know about you but this is the kind of news I want to hear from the god damn president.