Uber has faced headwinds since its app went online in Denmark in November 2014 as local taxi driver unions, companies and politicians complained that Uber posed unfair competition by not meeting legal standards required for established taxi firms.
Uber, which says about 2,000 Danish drivers and 300,000 riders use its app, said in a statement that it would shut down its services in Denmark on April 18 due to the new law.
"For us to operate in Denmark again the proposed regulations need to change. We will continue to work with the government in the hope that they will update their proposed regulations and enable Danes to enjoy the benefits of modern technologies like Uber," Uber said.
The taxi law passed in February introduced measures such as mandatory fare meters and seat sensors.
"It is a shame, that there was not a majority in favor of the government's proposal for a significant liberalization of the taxi law, which would have made it easier for Uber and similar ride services to operate legally in Denmark," Transport Minister Ole Birk Olesen said in a statement.
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