Crypto traders across Europe are digesting a new reality after the Dutch parliament approved a tax system that reaches further than many expected—straight into unrealized gains.The framework, reported by CoinDesk, applies a 36% tax rate to investment returns, including profits that exist only on paper. Investors don’t need to sell. The tax obligation arrives anyway.For traders, that changes the psychology almost immediately.Crypto portfolios are volatile by design. Gains appear and disappear quickly. Taxing unrealized gains creates a mismatch—investors may owe taxes on profits that vanish before they can be converted into cash. That’s not theoretical risk. It’s structural pressure.Still, markets haven’t panicked. Bitcoin and Ethereum prices have remained relatively stable in the immediate aftermath. But sentiment shifts rarely arrive all at once. They accumulate slowly.In crypto markets, regulatory friction tends to show up first in behavior. Investors start asking different questions. Where should capital sit? Which jurisdictions are safest? How exposed am I?The Netherlands has historically been viewed as crypto-friendly, or at least predictable. This decision complicates that perception.From a capital flow standpoint, mobility is crypto’s defining advantage. Investors can relocate themselves—or their assets—with relative ease. Policy changes like this introduce incentives to do exactly that.Among wealthier investors and crypto founders, jurisdictional arbitrage isn’t uncommon. Places like Dubai, Switzerland, and Singapore continue to position themselves as stable alternatives.That said, governments are under pressure too. Crypto wealth expanded dramatically over the past decade, often outside traditional tax frameworks. Fiscal tightening globally has sharpened focus on capturing that revenue.For regulators, the logic is straightforward. For investors, the implications are less comfortable.Over time, tax policy shapes crypto markets as much as price volatility does. Investors can manage risk. What they struggle to manage is unpredictability.The Dutch move adds a new layer of it