Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, is contemplating the implementation of a new tax on profits from investments in stocks and cryptocurrencies in an effort to combat inflation.
There are discussions within Turkey about the potential taxation of gains made from trading cryptocurrencies and stocks as the country grapples with high inflation rates. The proposal, which aims to ensure that all financial income is properly taxed, was brought up during a recent meeting of the ruling party, according to sources cited by Bloomberg.
The specifics of the plan are still being debated, and it is expected that new regulations will be introduced after the parliament reviews the legislation related to cryptocurrencies this week.
Turkey has been exploring the idea of regulating cryptocurrencies in order to be removed from the Financial Action Task Force’s (FATF) “grey list.” In mid-2022, the AK Party, led by President Recep Tayyip Erdogan, suggested a minimum capital requirement of 100 million lira (approximately $3 million) for crypto businesses. However, a final decision on this matter has not yet been reached.
In early November 2023, Şimşek announced that Turkey was finally introducing legislation regarding cryptocurrencies. Speaking to the nation’s planning and budget commission, he mentioned that the country had met 39 out of the 40 FATF standards and was in the “final stage” of compliance.
In early 2024, Şimşek stressed that the upcoming regulations are aimed at reducing the risks associated with crypto trading and safeguarding retail investors. It is said that these regulations will include defining important terms related to cryptocurrencies such as “crypto assets,” “crypto wallets,” and “crypto asset service providers.”
Turkey has been on the FATF’s “grey list” since 2021, which has negatively impacted confidence in its already fragile economy. With high inflation rates, cryptocurrencies have become increasingly popular in Turkey, serving as an alternative financial option for many.
For more information, a report reveals that Turkey has seen a rise in adult crypto investors.