Definitely, everyone wants to stay as private as possible. The people who will be most affected by this law are likely those trading actively because the government will require exchanges to provide data on traders to ensure they collect the necessary taxes. However, since this is about unrealized gains, I don’t think it’s necessary for long-term holders to report their Bitcoin, as long as they know there’s no link from the exchanges regarding when they acquired it.

If there is a link, then not reporting could lead to bigger penalties and, worst case, even accusations of a crime.

That’s quite complicated - holding assets outside of the country while living in that country. It’s really not feasible unless someone else is managing those assets, which I find very risky.

This sounds really weird because people have to pay taxes on the assets they hold and perhaps the bill’s rationale is completely devoid of any public benefit. So how is this going to continue, is their government trying to erode taxes for whatever justification?

The focus is not on the value of assets that have fallen so that taxes are lower, but this concept does not make sense at all if it is applied evenly because it speaks at the level of small ownership or large assets. The idea that the government is trying to develop there is not profitable at all and I think they only think about the benefits of taxes rather than considering alternatives that can be done by the wider community there.

Personally, I do not expect this to be the final decision and may need to be reviewed so that the regulation is more acceptable to some people involved in bitcoin and especially for the community there who are looking for alternatives to bitcoin for financial freedom issues.

I can see Blackrock and other investment houses going for this. I'm sure they will be happy to fork out the tax on the £billions they hold in Bitcoin. They will probably speculate through and overseas exchange they own, and incur massive losses. That way they can get massive credits to reduce their profits on other assets like carbon credits.

Some governments are still discouraging their citizens from investing in Bitcoin. Although they are not able to directly but indirectly their tax policy is showing that. Even if a person does not make profit by holding bitcoins, he also has to pay Tax. I don't know how reasonable such conditions can be.

Denmark is definitely one of the paradise states on earth. Where people are most interested in living. Their rules and regulation is promising but in recent times there are doubts about whether they will be able to implement the rules they are taking on taxing crypto. Although ideas have been proposed, no final decision has been made yet.

I am not against tax. But of course it will be supported by all if it is based on fairness. The Danish government is discussing taxing ordinary investors differently, with tax on those who benefit and a  tax on those who retain. Since this is not approved yet , I think they must change this policy. Lowering the tax level can be another good measure for this industry.

I'm really welcoming it as long as they can also pay my unrealized losses as well.  

By the way, taxing unrealized profit on bitcoin is not acceptable by me. I thought that this was because unrealized profit is not a form of income. It's very stupid to tax someone who hasn't sold their private property, and get profit by selling it.

I think the government is acting like a modern dictator. They don't care about its citizens. It seems that law matters less now.

In what world does it make any sense to set taxes on unrealized gain? Especially on as volatile asset as Bitcoin is? This is crazy! This will be an additional headache for every investor. Denmark should be aiming to motivate people to know what cryptocurrencies are and to invest in it but instead they make it less attractive for people while UAE does amazing job at attracting investors and businesses all over the world. This doesn't make sense and I hope they'll understand that everything should not be taxed.

People can move, sure, but that's not the solution to the problem. When something inappropriate happens, people should unite and fight against it instead of leaving their own country. This is definitely not my problem, more likely the problem of Danish people but it's still sad that Denmark, one of the most amazing country with high quality of life, instead of adopting future technologies, is doing the opposite of it. After the ETF approval and interest from other countries, it should also be Denmark's interest to have as many Bitcoin holders as possible in their country. It sounds very strange for me that they do the exact opposite.

Paying taxes on selling cryptocurrency is justifiable a bit but to pay taxes on the amount you hold is really an insane act by any government. Perhaps, it's only when you sell that they would know you have asset in crypto since they can get your personal details from the centralized exchanges you used as a medium to sell your crypto since your KYC documents are in their data.

I think anyone who have enough money should just use it and buy cryptocurrency where the government won't get to know the amount you got then anytime you need Fiats, you can just sell part of it. The only problem with this practice is volatility because if the price of any crypto you are holding falls at a time you needed to get Fiats it may be difficult which can even lead to selling at lost. Though for Monero, since the volatility is very slow, you won't record much losses if the price falls.

I believe they will soon realize that this initiative would be hard to implement as the gain/profit is quite subjective. If a crypto user knows how to manage the anonymity of his transactions, the government won't find out about his crypto involvements. Unless, the user will be using legit local crypto-exchanges as the government has a hold on them.