Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a “very limited” levy on transactions. Treasury and Finance Minister Mehmet Şimşek revealed this during an interview in Ankara, emphasizing the government’s aim to ensure all areas are taxed for fairness and efficiency without specifying the tax’s exact size. Back in 2008, Turkey slashed its tax rate on stock market profits from 10% to 0%.
Reports emerged on June 4 about plans to tax gains from stock and cryptocurrency trading in Turkey, prompting Minister Şimşek to highlight the importance of properly taxing all financial income during a weekend meeting. Currently, Turkey lacks specific regulations for taxing cryptocurrencies, but efforts are underway to establish a legal framework for digital assets.
In a bid to regulate the crypto market, Turkey’s ruling party introduced a new bill on May 16. The bill mandates crypto businesses to obtain licenses and adhere to international standards, including oversight by capital markets boards. It also requires revenue collection from crypto service providers and prohibits foreign crypto brokers to promote a locally regulated ecosystem, addressing concerns from the Financial Action Task Force (FATF) to steer clear of the regulator’s “gray list.”
Despite restrictions on Turkish crypto holders from using cryptocurrencies like Bitcoin (BTC) since 2021, Turkey holds a notable position in the global cryptocurrency market. According to Chainalysis data, the country ranks fourth worldwide in estimated trading volume, with a trading volume of $170 billion in 2023, surpassing economies such as Russia, Canada, Vietnam, Thailand, and Germany.
The cryptocurrency realm has unexpectedly divided Democrats in Turkey months before the upcoming election, revealing a new dynamic in the political landscape.