Turkey plans to tax cryptocurrency earnings as part of a move to tighten economic policy.
[As part of attempts to assist disinflation, Mehmet Şimşek, Turkey's Treasury and Finance Minister, is allegedly mulling a new tax on earnings from investments in equities and cryptocurrency.]
Due to Turkey's extreme inflation, profits from stock and cryptocurrency trading may soon be subject to taxes. According to individuals who spoke with Bloomberg, the measure was considered at a recent ruling-party conference and aims to ensure adequate taxes of all financial revenue.
The plan's specifics are still up for debate, but new rules should be addressed after parliament reviews this week's crypto-related legislation.
Turkey has been thinking about regulating cryptocurrencies in order to get off the Financial Action Task Force's (FATF) "grey list." A minimum capital requirement of 100 million lira, or around $3 million, was proposed by President Recep Tayyip Erdogan's AK Party in mid-2022 for cryptocurrency enterprises. But no decision has been taken on the subject as of yet.
Şimşek said at the beginning of November 2023 that the nation will at last be enacting crypto laws. In an address to the country's planning and budget commission, he stated that the US was in the "final stage" of compliance, having satisfied 39 of the 40 FATF requirements.
Early in 2024, Şimşek underlined that the new rules are meant to safeguard ordinary investors by reducing the dangers connected to cryptocurrency trading. Legal definitions of key phrases connected to cryptocurrencies, such as "crypto assets," "crypto wallets," and "crypto asset service providers," are purportedly important components of these legislation.
Since 2021, Turkey has been included on the FATF's "grey list," a designation that has undermined trust in the country's already precarious economy. In Turkey, amid high rates of inflation, cryptocurrencies have become quite popular and are now considered by many as an alternative source of financial security.
