Turkey is considering implementing taxes on gains from cryptocurrency and stock trading to support disinflation, according to a recent report. The decision, announced on June 5, is part of a strategic effort to enforce strict fiscal discipline and improve price stability in response to inflation challenges faced by the country.
The proposal to tax crypto and stock gains was discussed by Turkey’s Finance Minister Mehmet Simsek during a ruling-party meeting over the weekend. Simsek emphasized the importance of proper taxation on all financial income, highlighting the government’s commitment to creating a fair tax system. This new regulation marks a departure from the previous policy, which reduced tax on stock gains from 10% to 0% in 2008.
The Turkish parliament is set to review new crypto legislation this week, with further details of the plan still under review. The news of the proposed tax has already had an impact on the financial markets, with the Borsa Istanbul 100 index closing at a 1.8% decrease on June 4. Additionally, the Turkish lira depreciated by 1.2%, the Turkish stock index fell by 1.4%, and the banking index saw a significant drop of 3%.
This move to tax gains from cryptocurrency and stock trading comes at a time of increasing interest in the stock market in Turkey. The Central Securities Depository of Turkey reported a sevenfold increase in equity accounts since early 2020.
Turkey’s inclusion on the Financial Action Task Force’s (FATF) “grey list” in 2021 has led to a lack of confidence in the Turkish economy, prompting the country to consider regulating the cryptocurrency space as a means to address this issue. Cryptocurrency has become a popular alternative source of financial security for many people.
In efforts to comply with international standards, Turkey has been working towards establishing a regulatory framework for cryptocurrencies. The Treasury and Finance Minister Mehmet Simsek announced in January 2024 that Turkey is close to finalizing the crypto framework and has met 39 of the 40 FATF requirements. A crypto bill was submitted on May 16 to regulate the market according to global standards, covering all aspects of the crypto industry.
