Netherlands Proposes Tax Reform Impacting Cryptocurrency Investments

The Netherlands is set to introduce a tax reform that changes how investment asset taxes are calculated, shifting from a deemed return system to taxation based on actual returns. According to NS3.AI, this reform will affect assets including cryptocurrencies, potentially increasing tax burdens during bullish markets while reducing them in bearish phases. This approach introduces volatility-related tax risks for crypto holders. Critics of the reform argue that it could compel investors to sell assets to cover taxes on unrealized gains, which may negatively impact long-term crypto wealth building.