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.
Easy to assume that its citizens wouldn’t be happy. I mean the point of bitcoin is to be able to hold money and make transactions without sacrificing our data and privacy. I am sure that many holders are holding anonymously and would like it to stay that way.
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.
That is really odd but really beneficial for the government. The government is smart when it comes to taking money from its citizens but not doing anything to protect said citizens. I believe denmark citizens would prefer to hold bitcoin outside of the country as much as possible to avoid this.