Turkey’s Treasury and Finance Minister, Mehmet Şimşek, is reportedly considering implementing a new tax on gains from investments in stocks and cryptocurrencies as part of a broader effort to combat inflation.
As Turkey grapples with high inflation, gains from trading cryptocurrencies and stocks may soon be subject to taxation. This proposal, aimed at ensuring proper taxation of all financial income, was discussed during a recent ruling-party meeting, according to sources cited by Bloomberg.
While the details of the plan are still being ironed out, new regulations are expected to be considered after the parliament reviews legislation on cryptocurrencies this week.
Turkey has been contemplating crypto regulations to improve its standing with the Financial Action Task Force (FATF) and potentially get removed from the “grey list.” In mid-2022, President Recep Tayyip Erdogan's AK Party proposed a minimum capital requirement of 100 million lira (about $3 million) for crypto businesses, though a final decision has yet to be made.
In early November 2023, Şimşek announced that the country would finally introduce crypto legislation. Speaking to the nation’s planning and budget commission, he noted that Turkey has complied with 39 of the 40 FATF standards and is in the “final stage” of full compliance.
By early 2024, Şimşek highlighted that the forthcoming regulations aim to mitigate risks associated with crypto trading and protect retail investors. These regulations are expected to include legal definitions for key crypto-related terms such as “crypto assets,” “crypto wallets,” and “crypto asset service providers.”
Turkey has been on the FATF “grey list” since 2021, a status that has further strained confidence in its already fragile economy. Amid high inflation, cryptocurrencies have gained significant popularity in Turkey, serving as an alternative financial refuge for many.
