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.
Some governments are still discouraging their citizens from investing in Bitcoin. Although they are not able to directly but indirectly their tax policy is showing that. Even if a person does not make profit by holding bitcoins, he also has to pay Tax. I don't know how reasonable such conditions can be.
Denmark is definitely one of the paradise states on earth. Where people are most interested in living. Their rules and regulation is promising but in recent times there are doubts about whether they will be able to implement the rules they are taking on taxing crypto. Although ideas have been proposed, no final decision has been made yet.
I am not against tax. But of course it will be supported by all if it is based on fairness. The Danish government is discussing taxing ordinary investors differently, with tax on those who benefit and a tax on those who retain. Since this is not approved yet , I think they must change this policy. Lowering the tax level can be another good measure for this industry.