Dutch Lawmakers Move Forward with 36% Capital Gains Tax on Crypto
Key Takeaways:
- Dutch lawmakers propose a 36% capital gains tax on cryptocurrencies and other liquid investments, affecting not just realized but also unrealized gains.
- The measure still requires Dutch Senate approval and is slated for a 2028 implementation.
- Critics fear it may drive wealth—and residents—out of the Netherlands to countries with more favorable tax climates.
- The Netherlands’ stance reflects broader global debates over cryptocurrency taxation and regulation.
WEEX Crypto News, 2026-02-17 13:48:48
The rapidly evolving landscape of digital assets is undergoing another significant transformation, with the Netherlands taking center stage. Dutch lawmakers have progressed a legislative proposal that would introduce a sweeping 36% capital gains tax, a move that targets earnings from cryptocurrencies among a selection of liquid investments. If passed into law, the proposal would represent one of the most stringent taxation policies on digital assets in Europe.
An Ambitious Tax Proposal
In a decisive move, the House of Representatives in the Netherlands has passed the first hurdle towards implementing a 36% capital gains tax that isn’t solely confined to cryptocurrencies but extends to bank savings, equities, and interest-bearing instruments. The legislative proposal passed with significant support, garnering 93 votes, surpassing the necessary 75, showcasing strong political backing.
The proposed measure is noteworthy not just for its breadth but because it taxes both realized and unrealized gains. This means that investors would be taxed on value increases of their holdings, regardless of whether those gains are converted into cash or stored within the asset.
Skepticism and Criticism
Predictably, such a sweeping fiscal reform has sparked a polarized response. Detractors argue that taxing unrealized gains presents a particularly controversial issue; it’s akin to taxing someone for future potential wealth that hasn’t yet materialized tangibly. Critics fear this may lead to adverse economic behaviors, such as moving wealth offshore or re-locating to regions with more lenient tax rules.
Michaël van de Poppe, a renowned crypto analyst, has openly criticized the proposal, labeling it misguided. His concern is shared by many within the crypto community who worry about the plan’s impact on investment and innovation. This anxiety is exacerbated by historical comparisons, such as France’s experience in the 1990s, where analogous policies resulted in a significant business exodus.
Entrepreneur Denis Payre reflects on the pitfalls of such policies, noting how businesses and individuals fled France for friendlier economic regimes. The concern lies in history repeating itself, but this time within the European Union’s borders, where the free movement of individuals and capital might hasten the departure of wealth and innovation hubs from the Netherlands.
The Broader Implications
The introduction of this tax isn’t happening in a vacuum; it’s interwoven with global discussions on the potential and perils of digital asset taxation. In the United States, for example, tax reform proposals have also elicited vigorous debate. California’s potential wealth tax on billionaires drew considerable opposition from tech leaders, some of whom threatened relocation.
The Dutch proposal, while intending to modernize taxation and bring digital assets under a comprehensive regulatory framework, may albeit inadvertently stifle new investments and undercut the Netherlands’ attractiveness as a destination for fintech startups and crypto enterprises. At stake is the European nation’s ambition to lead in fintech and digital innovation, sectors increasingly integral to contemporary economic landscapes.
The Financial Perspective
The financial community is particularly attuned to these developments. As illustrations run through financial projections, they shed light on the potential impact of the proposed tax. For instance, an investor beginning with €10,000 and contributing €1,000 monthly might anticipate growing their portfolio to approximately €3.32 million over four decades without the burden of this tax. With the tax, however, their expected portfolio value would decrease to roughly €1.885 million, translating to a stark loss of €1.435 million.
Such figures underscore not just the potential financial burdens on individual investors but also the broader market impacts that might ensue. They raise questions about how such tax policies might influence investment behaviors, the risk calculus of long-term holdings, and the geographic distribution of crypto-friendly environments.
Crypto Investments in the Netherlands
Despite these looming regulatory changes, cryptocurrency investments in the Netherlands have been on an upward trajectory. As of October 2025, Dutch exposure to digital currencies through financial securities reached about €1.2 billion, reflecting a substantial growth from roughly €81 million in 2020. This burgeoning interest is attributed more to valuation gains in established digital assets than a large influx of new investor funds.
Nonetheless, this level of engagement still represents a modest fraction—0.03%—of the Netherlands’ total investment portfolio, underscoring that while interest in crypto is on the rise, traditional investments continue to dominate the landscape.
Dutch crypto firms, too, are taking innovative strides. In a notable move, Amdax, a local firm, procured €30 million to launch the Amsterdam Bitcoin Treasury Strategy (AMBTS), aiming to secure a foothold in Bitcoin reserves by accumulating up to 1% of the total Bitcoin supply. This initiative underscores a forward-thinking yet cautious optimism about the role digital currencies will play in future financial ecosystems.
Looking Ahead
As the Dutch Senate prepares to deliberate this proposal, the outcome remains uncertain. The decision will have implications not only for the Netherlands but could serve as a bellwether for other nations grappling with the complexities of crypto taxation. The possibility of adoption by 2028 leaves ample time for further debate, amendments, and adjustments, yet the clock is ticking for individuals and businesses potentially affected by the tax.
The world will be watching as the Netherlands decides whether to solidify its reputation as a pioneering—and perhaps controversial—leader in cryptocurrency regulation. Amidst global financial transformations, such legislative gestures signal critical inflection points as nations navigate the digital future. This period, fraught with challenges, also teems with opportunities to shape a balanced intersection between innovation and regulation.
Ultimately, the Dutch proposal invites broader reflection on how societies value digital assets, tax wealth, and promote economic growth. It underscores an enduring tension between innovation on the frontier of finance and the structures that strive to keep pace. As these conversations advance, the need for informed, inclusive, and pragmatic discourse has never been more essential.
FAQs
Why is the Netherlands considering a 36% capital gains tax on cryptocurrencies?
The Netherlands aims to modernize its tax system to include digital assets like cryptocurrencies, ensuring that potential gains are taxed comprehensively. This move reflects a broader global trend toward integrating digital finance within existing fiscal frameworks.
What are the criticisms against taxing unrealized gains?
Taxing unrealized gains is controversial because it involves levies on potential income that hasn’t been converted into cash. Critics argue that it may lead to capital flight and incentivize individuals to seek more favorable tax environments elsewhere.
How could this proposal affect the Netherlands’ economy?
Critics fear that the proposal might deter investment in the country, weaken its fintech sector, and prompt wealthy individuals and enterprises to relocate, thereby negatively impacting economic growth.
Has there been any historical precedent for such policies?
Yes, similar policies in France in the late 1990s led to a notable exodus of businesses and individuals seeking more favorable tax regimes, indicating potential risks for the Netherlands.
What is the current status of cryptocurrency investments in the Netherlands?
As of 2025, investments in digital assets like cryptocurrencies have increased significantly, though they still represent a small fraction of the overall investment market. Traditional assets continue to play a dominant role in Dutch portfolios.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
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