Turkish Treasury and Finance Minister Mehmet Şimşek is reportedly exploring a new tax on investment gains from both stocks and cryptocurrencies.
This move is seen as part of a broader effort to combat the nation’s high inflation. According to sources who spoke to Bloomberg, the proposal to tax crypto and stock trading activity stems from a desire to ensure all financial income is subject to proper taxation.
The details of this plan are still under discussion, with new regulations expected to be addressed following parliament’s review of crypto-related legislation scheduled for this week.
Beyond inflation concerns, Turkey’s crypto tax considerations also stem from its desire to be removed from the Financial Action Task Force’s (FATF) “grey list.” This designation signifies deficiencies in anti-money laundering (AML) regulations. In mid-2022, President Recep Tayyip Erdogan’s AK Party proposed a minimum capital requirement of 100 million lira (around $3 million) for crypto businesses, reflecting a broader push for tighter regulations and enhanced AML compliance. However, a final decision on both the tax and capital requirement proposals remains outstanding.
In early November 2023, Şimşek announced that Turkey was finally introducing crypto legislation. Speaking to the nation’s planning and budget commission, he noted that the country 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 are expected to include legal definitions for crucial crypto-related terms such as “crypto assets,” “crypto wallets,” and “crypto asset service providers.”
Turkey has found itself on the FATF’s “grey list” since 2021, leading to diminished trust in its already delicate economy. Amid high inflation rates, cryptocurrencies have gained significant traction in Turkey, becoming an alternative financial refuge for many.
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