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Turkey Aims to Tax Cryptocurrency Gains Amid Fiscal Crackdown: Report
Turkish Treasury and Finance Minister Mehmet Şimşek is reportedly considering a new tax on earnings from investments in stocks and cryptocurrencies as part of efforts to support disinflation.
Earnings from activity associated with cryptocurrency and stock trading may soon be taxed Turkey as the country struggles with high inflation. The proposal, aimed at ensuring adequate taxation of all financial income, was discussed during a recent meeting of the ruling party, sources said Bloomberg.
Details of the plan remain under discussion, with new regulations expected to be addressed after parliament considers cryptocurrency legislation this week.
Turkey has been considering regulating cryptocurrencies so that the country can be removed from the Financial Action Task Force (FATF) “grey list.” In mid-2022, President Recep Tayyip Erdogan’s AK Party proposed a minimum capital requirement of 100 million lira (about $3 million) for cryptocurrency-related businesses. However, no final decision has yet been made in this regard.
At the beginning of November 2023, Şimşek She said the country was finally introducing cryptocurrency legislation. Speaking at the National Planning and Budget Committee, he noticed that the country met 39 of the 40 FATF standards and was in the “final stage” of compliance.
At the beginning of 2024, Şimşek underlined that upcoming regulations aim to mitigate the risks associated with cryptocurrency trading, protecting retail investors. Key aspects of these regulations would presumably include legal definitions of crucial cryptocurrency-related terms such as “cryptocurrencies,” “cryptowallets,” and “cryptocurrency service providers.”
Turkey has been on the FATF’s “grey list” since 2021, a status that has eroded confidence in its already fragile economy. Amid high inflation rates, cryptocurrencies have gained considerable traction in Türkiye, becoming an alternative financial refuge for many.