An official in Turkey said a new rule will tax all crypto and stock transactions, including purchases and sales.
By Tolu Ajiboye
Edited by Julia Sakovich
Updated
3 mins read
Turkey is putting the finishing touches on a new measure that will impose transaction taxes on stock and crypto transactions in the country. A Reuters report revealed the development, referencing a government official on Wednesday.
The country has yet to officially state when these new rules will be enforced. However, citizens and residents can expect to pay some tax on all sales and purchases of digital assets and stocks. The forthcoming rule is part of efforts the country’s Finance Minister, Mehmet Simsek, is taking to shore up Turkey’s fiscal status and continue tackling high inflation levels.
According to a recent report, Turkey’s inflation level hit 75% in May, an increase from the 69.8% recorded in April. The Turkish Statistical Institute, a government agency responsible for official statistics, revealed that consumer prices in May rose 3.37% on a monthly basis. On an annual basis, Turkey recorded a 75.45% increase. The highest increases were seen in hotels, cafes, and restaurants at 92.9%, housing at 93.2%, and education at 104.8%.
A money manager at Strateji Portfoy, a portfolio management company in Istanbul, has said the move may “sound like pain” in the short term but would be a “huge gain” in the long term. According to Burak Cetinceker, the move may reduce speculation and volatility while enhancing investment culture.
Turkey’s soaring inflation may also have pushed officials to set the government’s sights on the crypto sector. As part of efforts to reshape the country’s status, Simsek recently said the government is taking active measures to take itself off the Financial Action Task Force’s “grey list”.
The list comprises countries with anti-money laundering measures that are considered insufficient. The FATF included Turkey on the grey list back in 2021. According to the inter-governmental body, Turkey’s geographic location makes it prone to money laundering risks from human trafficking, migrant smuggling, fuel smuggling, and drug trafficking.
Simsek said regulating the crypto sector is the last move required for Turkey to meet the FATF’s standards. The law will regulate crypto service providers, and create rules for the purchase, sale, transfer and storage of cryptocurrencies.
Introduced by AK Party chairman Abdullah Güler, the bill specifies requirements for registration and licensing. If it passes into law, crypto service providers in the country must obtain licenses from the Capital Markets Board of Turkey (CMB).
In addition to licensing crypto service providers, the Board will assist with resolving disputes. The CMB, along with the Scientific and Technological Research Council of Turkey, will also receive revenue from crypto firms. Furthermore, the new bill bans foreign crypto brokers, thereby protecting local crypto businesses.
In general, cryptocurrencies are loosely regulated in Turkey. The Central Bank of the Republic of Turkey introduced one of the rules back in 2021. This rule prevents people from using cryptocurrencies to make payments since crypto is not legal tender.
The other rule requires crypto exchanges to collect know-your-customer (KYC) information from users. This was introduced to prevent terrorism financing, money laundering, and related crimes.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
