According to a ruling by the Supreme Court of Denmark, both investors and miners must pay taxes on profits they generate by selling bitcoin. The decision was announced on March 30 by Højesteret, which is the highest court of appeal in the country. The court stated that people who buy bitcoin with the intention of selling it for a profit should not be exempt from taxation under local law. Even those who accumulate bitcoins through mining and then sell them for a profit are subject to the same taxation rules. Denmark has a high taxation rate on capital gains, ranging from 27% to 42%, depending on the amount of profit earned.
The Central Bank’s Stance on Bitcoin
Lars Rohde, the Governor of Danmarks Nationalbank, has expressed his reluctance towards bitcoin due to its volatility and lack of centralization. He has cautioned investors to be wary of the asset as it is purely speculative and carries no intrinsic value. Many central bankers, including Andrew Bailey of the Bank of England and Christine Lagarde of the European Central Bank, share Rohde’s opinion regarding the risks of investing in bitcoin. While Lagarde also believes that cryptocurrencies have no intrinsic value, she has expressed optimism about the potential of central bank digital currencies to transform the financial system.