Ruling Party Sources Deny Plan to Levy 40% Tax on Crypto Yields in Turkey – Regulation Bitcoin News

Turkey’s government does not intend to impose a 40 percent tax on cryptocurrency-related earnings as has been alleged, members of the ruling AKP party have told local press. They have also emphasized that current regulatory efforts are aimed at creating a sustainable environment for the blockchain industry.

Turkey to establish regulatory base for cryptocurrency market

A legislative proposal designed to regulate cryptocurrency trading in Turkey is likely to be presented to parliament in the coming weeks. Sources in the Justice and Development Party (AKP), the country’s ruling political force, have “flatly denied” allegations that Ankara authorities are going to tax the earnings of cryptocurrencies at a rate of 40%, reported the Turkish newspaper Hürriyet.

One of the AKP representatives, the deputy leader of the party’s parliamentary group Mustafa Elitaş, commented on social media last month that the new law will serve to regulate Turkey’s crypto system, while “preventing malicious acts, protecting investors and counteracts complaints, “as he said. that. He stressed that the drafts prepared by other institutions have also been mentioned by the media, but stressed that the legislator will have the last word.

On December 29, Elitaş hosted a meeting with 13 representatives of cryptocurrency platforms operating in Turkey at the Ankara parliament. Officials from the Ministry of Finance and Finance, the Banking Supervision and Regulation Agency (BDDK), the Financial Crimes Investigation Board (MASAK) and the Central Bank of Turkey also attended. Participants expressed support for the adoption of a regulatory framework that would allow for additional amendments to reflect changes in space.

AKP examines UK and US crypto regulations.

According to a report by another major Turkish daily, Milliyet, senior AKP officials have been reviewing current regulations in the UK, the US and Japan this week. Achieving transparency, security and auditability of crypto exchange platforms will be the first priority of Turkey’s own regulations, Hürriyet revealed, citing party officials who chose to remain anonymous. Establishing a suitable financial environment to adapt to a growing blockchain sector is the next key goal, they added.

More than 30 crypto trading platforms are currently operating in Turkey, the publication noted, and the country’s crypto asset market ranks in the top five in the world with nearly 5 million user accounts. The daily trading volume on the largest exchange, Binance, amounts to around $ 320 million. Last month, MASAK fined Binance’s Turkish platform BN Teknoloji 8 million lira (over $ 750,000 at the time) for violations established during liability inspections.

In May 2021, MASAK issued a set of guidelines for crypto service providers, requiring digital asset exchanges to conduct identity verification of their clients and report suspicious transactions, including high-volume transactions. The agency can impose fines on platforms that do not fulfill their functions and even prosecute their owners.

The rules were adopted after two Turkish crypto exchanges, Thodex and Vebitcoin, suddenly stopped operating, inflicting losses on thousands of investors and were the subject of anti-fraud investigations. In October, another platform, Coinzo, also closed. The popularity of cryptocurrency trading and investing in Turkey has risen significantly amid rising lira inflation, but the Turkish central bank has banned cryptocurrency payments.

Tags in this story

AKP, Crypto, cryptocurrency exchanges, cryptocurrency trading, cryptocurrency trading, Cryptocurrencies, Cryptocurrency, Exchanges, Levy, MASAK, party, Regulation, Regulations, ruling party, Tax, Tax rate, Taxation, Trading platforms, Turkey, Turkish

What kinds of regulations do you expect Turkey to adopt? Do share your thoughts on the matter in the comment section below.

Lubomir Tassev

Lubomir Tassev is an Eastern European tech-savvy journalist who likes Hitchens’s quote: “Being a writer is what I am, more than what I do.” In addition to cryptocurrencies, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

Leave a Comment