The Danish high court has said that Bitcoin earnings can be taxed.
The Danish Supreme Court has said that selling Bitcoin carries a tax liability. He said that this responsibility applies to both traders and miners.
Decision from Danish Supreme Court on Bitcoin Earnings
The Danish Supreme Court upheld a previous ruling, ruling that profits from the sale of Bitcoin constitute a taxable event.
The Supreme Court considered two examples of profiting from Bitcoin. The first involved an organization buying Bitcoin from a third party, and the second involved miners earning Bitcoin as a reward for securing the network. The court ruled that if they sell cryptocurrencies, both parties will have tax liability.
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For people in the first place, the court ruled that Bitcoin purchases are speculative in nature. Therefore, according to the Danish State Tax Code, their sales should not be tax-exempt.
The situation is the same with Bitcoin miners. The Supreme Court has ruled that buying Bitcoin through mining generates revenue and they should be taxed if they sell it.