Turkey Removes Controversial Crypto Tax Provisions From Bill

The Turkish parliament has unexpectedly withdrawn provisions to tax cryptocurrency transactions from a comprehensive bill aimed at regulating various economic aspects, including tax collection and defense spending.

According to reports, the contentious articles were removed after opposition lawmakers and stakeholders pushed back against the proposals. The government had included the tax provisions in the sweeping bill as part of its efforts to tap into Turkey's growing cryptocurrency sector.

The proposed tax would have slapped a 0.3% transaction tax on all crypto transactions processed by service providers, as well as introduce taxation for crypto-related earnings, obliging intermediaries to withhold 10% on capital gains.

However, the removal of the contentious articles does not necessarily mean that the government has abandoned its plans to tax cryptocurrency transactions entirely. Representatives from the ruling Justice and Development Party have indicated that they may file a revised draft as part of a separate legislative initiative in the future.