Turkey has scrapped plans to tax profits from stocks and cryptocurrencies, opting instead for a potential limited transaction levy. Treasury and Finance Minister Mehmet Şimşek highlighted the government’s intention to ensure comprehensive taxation coverage for fairness and efficiency, though specifics on the tax size remain undisclosed. Previously, in 2008, Turkey reduced its stock market profit tax from 10% to 0%.
Recent reports suggested the country was considering taxing gains from stock and cryptocurrency trading, prompting Minister Şimşek to emphasize the necessity of taxing all financial income during a weekend meeting.
Currently, Turkey lacks specific cryptocurrency tax regulations but is actively working on establishing a legal framework. A new bill introduced by the ruling party aims to regulate the crypto market, requiring businesses to obtain licenses and adhere to international standards. The legislation also mandates revenue collection from crypto service providers and prohibits foreign crypto brokers to bolster local regulation and address concerns raised by the Financial Action Task Force (FATF).
Despite regulatory efforts, Turkish crypto holders have been unable to use cryptocurrencies for payments since 2021. Nonetheless, Turkey remains a significant player in the global cryptocurrency market, ranking fourth in estimated trading volume according to Chainalysis data, with a trading volume of $170 billion in 2023, surpassing several major economies.
