Turkey Proposes Taxation on Cryptocurrency Income and Transaction Fees

Turkey's ruling Justice and Development Party (AK Party) has submitted a legislative proposal to parliament, aiming to impose taxes on cryptocurrency income and transaction fees. According to Foresight News, the draft law suggests a 10% withholding tax on profits from cryptocurrency transactions conducted on authorized platforms, to be deducted quarterly. Profits from transactions outside these platforms would require annual tax declarations. Additionally, the proposal mandates cryptocurrency service providers to pay a 0.03% transaction tax on sales and transfers they execute or facilitate. A report by blockchain research firm Chainalysis highlights Turkey's high cryptocurrency adoption rate, driven by soaring inflation and the depreciation of the lira, with annual transaction volumes reaching nearly $200 billion by 2025.