Turkey Moves to Regulate Cryptocurrency Market with Taxation Measures

The Turkish government is taking steps to tap into the country's large cryptocurrency market by introducing legislation to regulate its growth.

According to reports, lawmakers are proposing amendments to existing laws to ensure that incomes and profits generated from mass crypto adoption are properly taxed.

The draft bill includes a 'crypto asset transaction tax' provision, which will make all crypto sales and transfers through service providers subject to taxation. The platforms processing these transactions will be required to pay the tax to the Turkish state each month.

The proposed tax rate is 0.03%, and traders will be able to offset any losses from buying and selling assets against the withholding tax base of subsequent periods, within a calendar year.