In the Kingdom of Denmark, investors and miners who earn from the sale of bitcoin must comply with tax regulations.
The Supreme Court of Denmark ruled that individuals making profits from the sale of bitcoin must be taxed. The law will be applicable to both investors and miners.
The Court’s Ruling
Hojesteret, the third and final instance in all civil and criminal matters in the Kingdom of Denmark, ruled on March 30 that investors who profited from the sale of their bitcoin holdings must pay taxes.
The magistrates asserted that people purchase Bitcoin with the intent of selling it at a higher price “for speculative purposes,” and so such transactions should not be considered tax-free under local legislation.
“The Supreme Court assumes that bitcoins are acquired primarily for the purpose of sale and, to a lesser extent, as a means of payment.”
In addition, Hjesteret officials concluded that those who built their bitcoin stash through cryptocurrency mining and afterwards sold those assets for a profit must also comply with taxation regulations.
Denmark is not a tax haven and is recognized for its strict laws. Those who make less than 58,900 DKK (about $8,630) are taxed at a rate of 27% on their capital gains, while those who earn more are taxed at a rate of 42%.
The Central Bank is not fond of Bitcoin
The Governor of the Danmarks Nationalbank (the central bank of Denmark), Lars Rohde, is not a fan of the leading cryptocurrency.
In May 2021, he described its infamous volatility and lack of centralization, adding that he is “tempered to ignore” Bitcoin and the whole digital asset industry.
“It is, at best, a very speculative asset. “There is no stability and no assurance on the value of cryptocurrencies,” stated Rohde.
Many of his colleagues oppose the asset class, notably Andrew Bailey (Governor of the Bank of England) and Christine Lagarde (President of the European Central Bank). The former has previously cautioned investors to enter the market with extreme caution since they could lose all of their money.
“They have no inherent worth. It does not mean, however, that people do not value them, as they might have extrinsic value,” he continued in his manifesto of criticism.
Lagarde has asserted that cryptocurrencies are “worthless” and “based on nothing.” According to her, dealing with cryptocurrencies might result in significant losses due to the lack of regulations in the field.
On the other hand, the French politician is an ardent supporter of CBDCs, thinking that they will be significantly distinct from bitcoin and potentially provide benefits to the financial system:
“The day we have a digital currency issued by the central bank, any digital euro, I will guarantee that the central bank will be behind it, and I believe it will be substantially different from many of these other things.”