Denmark’s Supreme Court Rules That Bitcoin Profits Are Taxable

Christian Wienberg, Bloomberg News

The Bitcoin logo in Hong Kong, China, on Wednesday, Dec. 21, 2022. Cryptocurrencies have had a harsh 2022 after reaching record highs late last year, buffeted by everything from the Fed's policy tightening to the implosions of the Terra/Luna ecosystem, hedge funds Three Arrows Capital and exchange FTX. Photographer: Paul Yeung/Bloomberg , Bloomberg

(Bloomberg) -- Denmark’s Supreme Court ruled that profits made from the sale of Bitcoin are taxable in two decisions which may set a precedence for cryptocurrency investments in the Nordic country.

The verdicts, which found that investing in the digital currency is speculative in nature, uphold the decisions of the lower courts, the Supreme Court in Copenhagen said on Thursday.

“The Supreme Court assumes that Bitcoin are generally only acquired with a view to being sold and, to a limited extent, to be used as a means of payment,” the court said.

One case involved profits from the sale of Bitcoin that were purchased, while the other concerned the sale of digital currency that was mined.