Netherlands to vote in November on taxing unrealized cryptocurrency gains; industry warns it could trigger a sell-off wave

On October 27, according to Bloomberg, a Dutch crypto industry organization warned that investors may sell off crypto assets if they are excluded from the proposed new capital gains tax regime. Under the current proposal by Dutch regulators, financial assets such as stocks, bonds, and options will transition to capital gains taxation upon sale starting in 2028, while cryptocurrencies, gold, and foreign exchange may still be required to pay annual taxes on unrealized gains at least until 2030.

However, the Dutch Ministry of Finance stated that temporarily distinguishing between different asset classes is a transitional measure to accelerate the tax reform process. The relevant proposal remains undetermined, and the Dutch House of Representatives plans to hold a vote on it on November 12.