The Supreme Court of Denmark ruled that people should be subject to taxation when generating profits by selling bitcoin.
The legislation will apply to both investors and miners.
The Court’s Decision
Højesteret – the third and final instance in all civil and criminal cases in the Kingdom of Denmark – announced on March 30 that investors who made any profits when selling bitcoin holdings will have to pay taxes.
The magistrates claimed that people buy BTC, hoping to sell it at a higher price “for the purpose of speculation.” Therefore, according to local law, such transactions should not be classified as tax-free.
“The Supreme Court assumes that bitcoins are generally only acquired with a view to being sold and, to a limited extent, to be used as a means of payment.”
Højesteret’s officials further determined that individuals who accumulated their bitcoin stash via cryptocurrency mining and later sold those possessions for a profit must also abide by taxation rules.