Denmark Tax Agency Clarifies Tax Treatment of Cryptocurrency Losses Upon Bankruptcy of Crypto Trading Platform

The Danish Customs and Tax Administration June 25 posted Tax Council Binding Answer No. SKM2025.356.SR, clarifying the tax treatment of cryptocurrency losses upon the bankruptcy of a crypto trading platform. The taxpayer, an individual, lost some bitcoins (BTC) due to the bankruptcy of a specified crypto trading platform. The taxpayer sought clarification on whether he must be taxed on his profits upon the payment of dividends from the relevant estate, as well as whether he could deduct the value of the lost BTC in connection with the platform’s bankruptcy. Upon review, Tax Council found that the taxpayer: 1) was required ...