A recent binding answer from the Tax Council illustrates a central prerequisite for obtaining a deduction for losses when trading with crypto assets.

The short version: Only when a token is sold is a loss realized that can be deducted on the annual statement.

The long version (quoted from the binding answer): “Deduction rights according to the State Tax Act for assets acquired in speculative intent presupposes, that a sale has actually been carried out, it will say a disposal of the asset. The Tax Council found that a rug pull does not constitute a sale. Hence, it was the Tax Council’s assessment, that there is no deduction according to the State Tax Act in the event of a rug pull.”

The binding answer can be found here: https://info.skat.dk/data.aspx?oid=2395533&lang=da