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06/06/24
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Turkish Authorities Not Planning to Tax Crypto Gains
Plans to start taxing people on profits obtained from crypto and stocks have reportedly been dismissed in Turkey. However, the authorities may introduce a “very limited” levy on transactions.
Bloomberg’s report noted that the Turkish authorities are considering a “very limited” transaction tax on the assets, as revealed by Treasury and Finance Minister Mehmet Şimşek during an interview.
“Our aim is to leave no area untaxed in order to provide justice and effectiveness in taxation,” said Şimşek, but did not specify its possible size. Sixteen years ago, the government cut the tax rate on stock market profits from 10 percent to 0 percent.
According to the report, the plan is to impose a tax on gains from stock and crypto trading, as Minister Şimşek emphasized the need to adopt proper taxation of all financial income during a meeting last weekend.
There are no specific regulatory measures in place to tax crypto in the country at the moment, but the authorities are trying to come up with a legal framework to oversee digital assets. About three weeks ago, the country’s ruling party proposed another bill towards regulating the cryptocurrency market.
As stipulated in the bill, cryptocurrency businesses will be required to obtain licenses and comply with global standards like being regulated by capital markets boards. Crypto service providers will be required to pay revenue and foreign cryptocurrency brokers will be banned towards fostering a locally regulated space.
Media reports across the country revealed that the move is towards addressing concerns raised by the Financial Action Task Force (FATF) and ensuring that Turkey’s name is removed from the FATF’s gray list.
Chainalysis data shows that Turkey is number four in the list of top countries in terms of crypto trading volume. According to estimates, Turkey’s trading volume was $170bn last year.
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