Norway Tax Agency Clarifies Tax Treatment of Digital Currency Conversions

The Norwegian Tax Administration April 8 posted online Tax Appeals Board Decision No. SKNS1-2025-83, clarifying the tax treatment of digital currency conversions. The taxpayer, an individual, planned to use digital currency as collateral to borrow stable cryptocurrency through a lending platform involving automatic token conversion and a decentralized lending protocol. The taxpayer sought clarification on whether the conversions and collateral arrangements constituted taxable realization events. The Tax Office held that the transactions involved exchanges of ownership rights because the taxpayer relinquished ownership of one type of digital assets and acquired qualitatively different digital assets. On appeal, the Tax Appeals Board ...