There Are New Developments in Turkey’s Cryptocurrency Tax Bill

In the Turkish Grand National Assembly, tax regulations targeting crypto assets were removed from the bill following last-minute negotiations between the government and opposition parties.

While the withdrawal of controversial regulations in the cryptocurrency market has provided short-term relief to the sector, it also signals that the regulations have not been completely shelved and may be brought up again in the future.

The General Assembly, chaired by Deputy Speaker Celal Adan, discussed a comprehensive omnibus bill proposal that includes tax policies, defense spending, and various economic regulations. However, before official discussions began, following strong objections from opposition MPs, an agreement was reached to remove some critical clauses related to crypto assets from the bill.

The regulations included in the draft proposed a 0.3% transaction tax on cryptocurrency buying, selling, and transfer transactions through service providers. Furthermore, it planned to tax cryptocurrency gains largely through withholding tax at source.

However, officials stated that the regulations in question have not been completely repealed, and a revised version could be reintroduced to Parliament as a separate bill. This suggests that cryptocurrency regulations in Turkey may be reshaped in the coming period.

Although crypto regulations have been removed from the proposal, the omnibus bill continues to include significant financial regulations. Accordingly, it is planned to introduce a 20% Special Consumption Tax (SCT) on diamonds, pearls, and other precious stones, and products made from them.

*This is not investment advice.