Denmark Considers New Crypto Taxation Rules for 2026

The Tax Law Council of Denmark is looking at new laws that may tax unrealized gains and losses on cryptocurrency assets owned by Danish investors. The goal of the new regulation, which might go into force in 2026, is to streamline the current tax structure, which many believe is unjust to cryptocurrency investors.

The Council described three potential taxation methods in its extensive 93-page report: inventory taxes, warehouse taxation, and capital gains taxation. The purpose of these models was to develop a single tax strategy for all cryptocurrency assets. Rasmus Stoklund, the Danish Tax Minister, claims that some investors have been unjustly affected by the current capital gains tax and supports simpler, more transparent regulations.

Focus on Inventory Taxation

The Council’s report leans towards “inventory taxation,” where an investor’s entire crypto portfolio would be treated as a single inventory, taxed annually. Under this model, crypto assets would be taxed like other financial assets, such as stocks and bonds, regardless of whether the assets have been sold or not.

“The so-called inventory taxation occurs as capital income and in return implies that the taxation occurs continuously, regardless of whether crypto assets have been sold,” the Council wrote.

If enacted, this would mean Danish crypto holders could be taxed on unrealized gains and losses. However, it remains unclear how far back the new tax rules might apply to current crypto holdings.

The report also suggests requiring crypto service providers, including exchanges and payment platforms, to report customer transaction data. This information would be shared across European Union member states to ensure transparency and regulatory consistency.

Although these recommendations are significant, the Council’s proposals still need approval from the Danish Parliament. Stoklund confirmed that the earliest the bill could be introduced is 2025, and if passed, it would not take effect until 2026.

“There is a need for clearer and more appropriate rules in the area. I look forward to discussing the bill with parties in the Folketing,” added Stoklund.