Turkey has decided against implementing taxes on profits from stocks and cryptocurrencies, opting instead for a possible minimal levy on transactions. Treasury and Finance Minister Mehmet Şimşek mentioned during an interview in Ankara that the government is contemplating a transaction tax on assets, keeping it to a very limited scope.
“Our goal is to ensure fairness and efficiency in taxation by not leaving any area untaxed,” Şimşek stated, without specifying the potential size of the tax. In 2008, Turkey lowered its tax rate on stock market profits from 10% to 0%.
Reports from Bloomberg on June 4 indicated that authorities in Turkey 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 meeting over the weekend.
Currently, Turkey does not have specific regulations in place for taxing cryptocurrencies. However, efforts are underway to establish a legal framework for digital assets.
On May 16, Turkey’s ruling party introduced a new bill to regulate the crypto market. The bill mandates that crypto businesses obtain licenses and adhere to international standards, such as being regulated by capital markets boards.
The legislation also requires revenue collection from crypto service providers and prohibits foreign crypto brokers to promote a locally regulated ecosystem. This move aims to address concerns from 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 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 banned from using cryptocurrencies like Bitcoin (BTC) for payments.