The Turkish government has outlined plans to introduce regulatory guidelines for cryptocurrency assets, with taxation on these assets set to begin in 2024.
This decision was highlighted in the 2024 Presidential Annual Program, which was made public on Wednesday. The translated document provides insights into Turkey’s stance on cryptocurrencies, a topic that has generated much discussion within the nation.
The report mentions, “Efforts will be finalized to categorize digital virtual assets within the legal framework of Turkey for taxation purposes.”
Amidst rampant inflation issues in Turkey, there was a noticeable surge in cryptocurrency adoption in August. A survey by KuCoin highlighted that a majority of the Turkish populace is resorting to cryptocurrencies as a hedge against the rising inflation.
The regulatory blueprint was showcased in a supplementary issue of the Official Gazette, revisiting previously sidelined matters.
Previously, Turkish legislation had placed restrictions on cryptocurrency use in an effort to safeguard the national currency, the Turkish lira. However, this stance was met with significant resistance from the nation’s cryptocurrency enthusiasts, leading to grassroots initiatives that applied considerable pressure on the government.
The Presidential Decree prominently lists cryptocurrency-related projects under the “Policies and Measures” section, specifically as item 400.5.
One of the standout revelations from this decree is the intent to craft a precise legal characterization for digital assets in accordance with Turkish law. The 2024 program further underscores the government’s ambition to introduce fresh regulatory norms for cryptocurrency trading platforms. The specifics of these forthcoming regulations, however, have yet to be delineated.
Resurging Crypto Focus
Turkey’s decision to regulate and tax cryptocurrencies is widely perceived as a progressive move, fostering a more transparent and safeguarded ecosystem for digital asset enthusiasts.
While Turkey has previously ventured into formulating guidelines for cryptocurrencies and associated exchanges, emphasizing taxation, tangible advancements were lacking.
The urgency for government supervision became even more palpable following the sudden shutdown of Thodex, a leading Turkish cryptocurrency exchange, in April 2021. This unforeseen closure resulted in over 400,000 users being deprived of their deposits, amounting to a staggering $2 billion, which resonated deeply across the nation.