Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a potential small levy on transactions. Treasury and Finance Minister Mehmet Şimşek revealed during an interview in Ankara that the government is exploring the idea of a limited transaction tax on these assets.
“Our goal is to ensure that all areas are taxed fairly and efficiently,” Şimşek explained, though he did not specify the exact rate of the potential tax. In 2008, Turkey had reduced its tax rate on stock market profits from 10% to 0%.
Reports from Bloomberg on June 4 had indicated that Turkish authorities were planning to introduce a tax on gains from stock and cryptocurrency trading. Minister Şimşek emphasized the importance of properly taxing all financial income during a recent meeting.
While Turkey currently lacks specific regulations for taxing cryptocurrencies, efforts are underway to establish a legal framework for digital assets. The ruling party introduced a bill on May 16 to regulate the crypto market, requiring businesses in the sector to obtain licenses and adhere to international standards set by capital markets boards.
The bill also mandates revenue collection from crypto service providers and prohibits foreign crypto brokers, aiming to create a locally regulated ecosystem. This move is intended to address concerns raised by the Financial Action Task Force (FATF) and remove Turkey from the regulator’s “gray list.”
Turkey holds a significant position in the global cryptocurrency market, ranking fourth in estimated trading volume according to Chainalysis data. The country’s trading volume in 2023 was estimated at $170 billion, surpassing economies like Russia, Canada, Vietnam, Thailand, and Germany.
Since 2021, Turkish crypto holders have been banned from using cryptocurrencies like Bitcoin (BTC) for payments. The crypto industry has suddenly caused a division among Democrats in the country, months ahead of the upcoming election.