Report: Turkey seeks to tax cryptocurrency profits as part of fiscal tightening efforts
Turkey’s Treasury and Finance Minister, Mehmet Şimşek, is reportedly contemplating the implementation of a new tax on gains from investments in stocks and cryptocurrencies as part of efforts to support disinflation. The proposal, which aims to ensure the proper taxation of all financial income, was discussed during a recent ruling-party meeting, according to Bloomberg sources. While the details of the plan are still being discussed, new regulations are expected to be addressed after parliament reviews crypto legislation this week.
Turkey has been considering implementing regulations on cryptocurrencies in order to be removed from the Financial Action Task Force’s (FATF) “grey list.” In mid-2022, the AK Party proposed a minimum capital requirement of 100 million lira (approximately $3 million) for crypto businesses. However, a final decision on the matter has not yet been made.
In early November 2023, Şimşek announced that the country was finally introducing crypto legislation. Speaking to the nation’s planning and budget commission, he noted that Turkey had met 39 of the 40 FATF standards and was in the “final stage” of compliance.
In early 2024, Şimşek emphasized that the upcoming regulations aim to mitigate the risks associated with crypto trading and protect retail investors. These regulations would reportedly include legal definitions of important crypto-related terms, such as “crypto assets,” “crypto wallets,” and “crypto asset service providers.”
Being on FATF’s “grey list” since 2021 has eroded confidence in Turkey’s already fragile economy. Cryptocurrencies have gained significant popularity in the country, serving as an alternative financial refuge for many investors amidst high inflation rates.
Read more: Turkey sees an increase in adult crypto investors, according to a report.
