Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a potential “very limited” levy on transactions. Treasury and Finance Minister Mehmet Şimşek revealed this during an interview in Ankara, emphasizing the government’s goal of ensuring fairness and efficiency in taxation.
In 2008, Turkey reduced the tax rate on stock market profits from 10% to 0%. Recent reports suggested that authorities in the country were planning to tax gains from stock and cryptocurrency trading, prompting Minister Şimşek to highlight the importance of properly taxing all financial income during a weekend meeting.
While Turkey currently lacks specific regulations for taxing cryptocurrencies, efforts are underway to establish a legal framework for digital assets. A new bill introduced by the ruling party on May 16 aims to regulate the crypto market by requiring businesses to obtain licenses and adhere to international standards enforced by capital markets boards.
The bill also mandates revenue collection from crypto service providers and prohibits foreign crypto brokers in a bid to create a locally regulated ecosystem. This move is aimed at addressing concerns raised by the Financial Action Task Force (FATF) in order to remove Turkey from the regulator’s “gray list.”
Turkey holds a significant position in the global cryptocurrency market, ranking fourth worldwide in estimated trading volume according to data from Chainalysis. 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 banned from using cryptocurrencies like Bitcoin (BTC) for making payments. This development in the crypto sector has exposed a sudden divide among Democrats in Turkey months ahead of the upcoming election.