Denmark Tax Agency Clarifies Capital Gains Taxation of Speculative Cryptocurrency Purchases

The Danish Customs and Tax Administration Sept. 24 posted City Court Decision No. SKM2025.538.BR, clarifying the capital gains tax treatment of speculative cryptocurrency transactions. The taxpayer, an individual, received approximately 150 bitcoins in 2017 that were later sold at a profit. The taxpayer claimed that the purchase was speculative and financed through a loan, and that the amount of taxable gains should be offset by the loan amount. On appeal, the City Court found that: 1) the taxpayer had the burden of proving the existence of the loan and any deductible expenses; 2) the capital gains were taxable because the ...