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

Members of the ruling AKP party indicated that they do not expect to impose a 40 percent levy for crypto-related earnings in Turkey. A majority of them also stressed that current regulatory efforts were aimed at creating an environment conducive to the growth and sustainability of the blockchain industry.

Turkey establishes a regulatory framework for cryptocurrency market

The parliament will soon receive a proposal that regulates cryptocurrency trading in Turkey. Sources from the Justice and Development Party (AKP), the country’s ruling political force, have “strongly denied” allegations that authorities in Ankara are going to tax cryptocurrency gains at a rate of 40%, the Turkish newspaper Hürriyet reported.

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 countering grievances” as he put it. While he acknowledged that other institutions had also prepared drafts, he stressed that it will be the legislature that has final authority.

On Dececmber 29, Elitaş organized a meeting with 13 representatives of cryptocurrency platforms operating in Turkey at the parliament in Ankara. Officials from the Treasury and Finance Ministry as well as the Banking Regulation and Supervision Agency BDDK, Financial Crimes Investigation Board MASAK and Central Bank of Turkey attended the meeting. Participants supported the adoption of a framework for regulation that could allow additional amendments to accommodate changes in this space.

AKP examines US Crypto Regulations and UK Crypto Regulations

Milliyet reports that senior members of AKP reviewed the U.K.’s regulations this week. Achieving transparency, safety and auditability of crypto exchange platforms will be the first priority of Turkey’s own regulations, Hürriyet revealed, quoting party officials who chose to remain anonymous. They stated that the next goal is to create a financial environment suitable for a growing blockchain industry.

More than 30 crypto trading platforms are currently operating in Turkey, the publication noted, and the country’s crypto assets market is among the world’s top five with almost 5 million user accounts. Binance is the biggest exchange and has a daily trade volume of around $320million. 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.

MASAK published guidelines in May 2021 for cryptocurrency service providers. They require digital asset exchanges that they verify the identity of customers, report suspicious trades, and to file reports on high volume trading. Platforms that do not fulfill their obligations can be subject to fines and their owners could even face criminal charges.

Two Turkish cryptocurrency exchanges, Thodex, and Vebitcoin suddenly stopped trading. This caused thousands to lose their investments and led to the adoption of these rules. Coinzo closed its doors in October. Due to the increasing inflation in Turkey, cryptocurrency trading and investment has grown significantly. But crypto payments were stopped by the Turkish central banks.

Which regulations would you like to see Turkey adopt? Please comment below with your opinions.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.