Netherlands withdraws bill to tax unsold Bitcoin amid investor concerns

Bitcoin: Bitcoin is the leading decentralized cryptocurrency, widely used as a digital asset and store of value. Dutch tax policy changes directly impact holders maintaining self-custody of Bitcoin by retaining taxation on realized gains. Netherlands: The Netherlands is a European country with a developed economy and established financial sector. Its Senate recently withdrew proposed legislation targeting taxes on unsold cryptocurrencies due to concerns over potential investor relocation. • The proposed regime would have taxed annual increases in asset values, including crypto holdings, even before sale. • The 36% rate was linked to the Actual Return in Box 3 reform and was expected to begin in 2028. • Critics warned that taxpayers could face bills on paper gains without sufficient cash, potentially forcing asset sales. • The replacement model is expected to tax gains when investments are sold rather than while they remain unrealized. • Crypto and foreign-currency gains were expected to enter the revised framework later, reportedly around 2030. • The policy reversal reduces a prospective tax overhang for Dutch crypto investors but does not eliminate future taxation of realized gains.