Dutch crypto industry groups are raising alarms over potential sell-offs if the government excludes cryptocurrencies from a planned shift to a more investor-friendly wealth tax. Under the current proposal, crypto assets, along with gold and foreign currencies, will still be subject to an annual levy on unrealized gains until at least 2030. Meanwhile, crypto-linked exchange-traded products (ETPs) would be treated under the new capital gains regime.
The discrepancy in tax treatment could drive investors to offload their crypto holdings to avoid the higher tax burden. Industry experts warn that this could lead to a significant market impact, as Dutch investors may seek to rebalance their portfolios to minimize tax liabilities.
The government's proposal aims to simplify the tax system for investors, but the exclusion of crypto assets from this reform has sparked concerns. The current system imposes an annual tax on unrealized gains, which many investors find burdensome. The new regime would shift to a capital gains tax, applying only when assets are sold.
Crypto industry groups argue that the carveout for cryptocurrencies is unfair and could stifle growth in the sector. They are calling for a more inclusive approach that aligns crypto assets with other investment products under the new tax framework.