The Supreme Court Of Denmark Decides: Profits From Bitcoins Will Be Taxed

The Supreme Court of Denmark has decided in favor of taxing earnings from the selling of bitcoins. This decision reaffirms another recent decision of the Supreme Court of Denmark. The Supreme Court of Denmark reviewed two instances involving earnings from the selling of bitcoins in reaching its decision. In the first instance, a person obtained bitcoins from a third party. In the second case, they are minors who are compensated with bitcoins in exchange for safeguarding the network.
The Supreme Court of Denmark ruled that if these two entities sold their crypto-currencies, they would be subject to taxation. To clarify its judgement, the Danish Supreme Court argues that in the first case, the purchase of bitcoins was speculative. In reality, each sale of these crypto-currencies must be accompanied by a tax, which the Court bases on Danish state tax legislation.In the instance of miners, the Supreme Court of Denmark rules that mining for bitcoins is a kind of revenue. If these bitcoins were to be sold, they would be liable to taxation.