Cryptocurrencies continue to gain popularity in Turkey, as well as all over the world, in recent years. This popularity brings with it the need for legal regulation. According to information from the Ministry of Treasury and Finance, two separate tax types will come into effect for earnings from crypto assets in Turkey. This development heralds the beginning of a new era in the crypto industry in Turkey. Although the details of the regulations are not yet clear, they are followed with great interest by investors and all relevant parties in this field.
Cryptocurrency regulations gained momentum in Turkey
According to Rahim Ak from Habertürk, cryptocurrency regulations are gaining momentum in Turkey. According to information from the Ministry of Treasury and Finance, two different types of taxes will come into effect for earnings from cryptocurrencies. This regulation aims to tax the income obtained from crypto assets and prevent them from being smuggled abroad.
The first type of tax will be called transaction tax and will be at a low rate like the Banking and Insurance Transactions Tax (BSMV). According to the information obtained, this tax rate is expected to be around 5%. The aim is to ensure that a certain portion of the income obtained from this field is taxed, without scaring the crypto market.
Escape abroad is prevented with withholding tax
The second type of tax will be called withholding tax and will be applied to crypto assets, just like securities such as bonds and stock markets. The purpose of this tax is to prevent earnings from crypto assets from being smuggled abroad. The withholding tax rate is planned to be zero. In this way, crypto asset holders will have the obligation to file a declaration and declare their earnings.
Regulations will come to parliament soon
Details of the regulations regarding crypto taxation will become clear as a result of the studies carried out by the Capital Markets Board (CMB) and the Revenue Administration (GİB). After the studies are completed, the regulations are expected to be presented to the Parliament and become law after the local elections.
One of the most important points of discussion regarding cryptocurrency taxation is the definition of crypto assets. In Turkey, crypto assets are defined in the “Regulation on the Non-Use of Crypto Assets in Payments” published by the Central Bank as “intangible assets that are not qualified as fiat money, registered money, electronic money, payment instrument, securities or other capital market instruments”. This definition creates some uncertainty in terms of taxation of crypto assets.
Regulations will contribute to the cryptocurrency industry
Experts think that regulations regarding cryptocurrency taxation can make a positive contribution to the industry. Thanks to these regulations, crypto assets can become more transparent and reliable, which can attract the attention of investors. In addition, increased tax revenues and prevention of illegal activities are among the expected benefits.
As a result, studies on cryptocurrency taxation are progressing rapidly in Turkey. The regulations, which are expected to be presented to the Parliament soon, will be an important step in taxing crypto assets and preventing their smuggling abroad.
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