Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a possible limited levy on transactions. Treasury and Finance Minister Mehmet Şimşek revealed this information during an interview in Ankara, stating that the government is considering a transaction tax on assets, although the specifics are yet to be determined. In 2008, Turkey had reduced its tax rate on stock market profits from 10% to 0%.
Earlier reports had indicated that Turkey was planning to impose a tax on gains from stock and cryptocurrency trading. Minister Şimşek emphasized the importance of properly taxing all financial income during a recent meeting. Currently, Turkey does not have specific regulations in place for taxing cryptocurrencies, but efforts are being made to establish a legal framework for digital assets.
The country’s ruling party had introduced a new bill on May 16 to regulate the crypto market. The bill requires crypto businesses to obtain licenses and adhere to international standards, such as being regulated by capital markets boards. It also mandates revenue collection from crypto service providers and prohibits foreign crypto brokers to promote a locally regulated ecosystem. This move aims to address concerns raised by the Financial Action Task Force (FATF) and remove Turkey from the regulator’s “gray list.”
Turkey holds a prominent position in the global cryptocurrency market, ranking fourth worldwide in estimated trading volume according to Chainalysis data. The country’s trading volume reached $170 billion in 2023, surpassing economies like Russia, Canada, Vietnam, Thailand, and Germany. Since 2021, Turkish crypto holders have been restricted from making payments using cryptocurrencies like Bitcoin (BTC).
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