Denmark court rules crypto gains taxable due to speculative intent

The Danish Customs and Tax Administration published City Court Decision No. SKM2025.464.BR, providing clarification on the tax treatment of gains from cryptocurrency sales.

The case involved an information technology (IT) developer who acquired cryptocurrency in 2011 and subsequently sold portions of it. The Danish Tax Agency assessed that the gains should be included in the taxpayer’s income on the basis that the purchase had a speculative character.

Key findings of the court:

1. Speculative purpose presumed:
   The City Court held that the prospect of resale profit was a significant factor behind the purchase. This was sufficient to classify the transaction as speculative under Danish tax law.
2. Professional vs. speculative intent:
   While the taxpayer maintained that the acquisition was solely for technical experimentation related to software development, the court noted that the amount of cryptocurrency acquired and the lack of specific need indicated that profit motives were present.
3. Taxable income adjustment upheld:
   As a result, the court agreed with the Tax Agency’s decision to adjust the taxpayer’s income upward to reflect the gain from the sale of cryptocurrency as taxable.

This decision reinforces Denmark’s position on the taxation of digital asset gains, particularly when speculative elements are involved, regardless of any concurrent professional or technical use.