In both the cryptocurrency market and the blockchain industry, Turkey is one of the countries to keep an eye on. The gateway to the East is known for its very progressive attitude towards cryptocurrency and their population has one of the largest percentages (around 20%) of cryptocurrency owners in the world. Currently, actions involving crypto are not taxed at all, as no regulation is in place. To find out more about how Bitcoin and co. are legally treated in Turkey, keep on reading!
Cryptocurrencies in Turkey
As already mentioned, Turkey has the highest proportion of people who use or own cryptocurrency in the whole world. This is due to the fact that the Turkish government has been struggling with financial and political problems for a while now, which also affects the population’s attitude and trust towards the economy and their national fiat currency, the Turkish Lira. In 2018 the Turkish Lira experienced a crisis and lost a third of its value. A year later, the Turkish government froze over 3 million bank accounts and sent out foreclosure notices to taxpayers who were unable to pay their debt. All of this resulted in a general mistrust towards the government and an increase in cryptocurrency investments.
The Taxation of Cryptocurrency in Turkey
As of now, there is no specific regulation for the use and trading of cryptocurrencies, which is why Turkey is such an attractive country for crypto-traders. There is not even a proper classification for Bitcoin and co. yet, and they are not considered currency so far. However, regulators want to gain more oversight of all activities involving crypto and set up a framework for a clear regulation. The Capital Markets Board of Turkey (CMB) is now looking to come up with a solution that will keep the country interesting for the crypto-sphere but at the same time regulate its use.
Turkey has taken quite the liking in digital assets. Many experts claim that the country will play a key role in the future of finance, as its government is looking to adapt blockchain technology and launch a national digital currency. Even Binance’s CEO, Changpeng Zhao, has praised the country for its attitude towards crypto and claims that it will be an important market in the future.
Disclaimer: The information provided in this blog post is for general information purposes only. The information was completed to the best of our knowledge and does not claim either correctness or accuracy. For detailed information on crypto regulations we recommend contacting a certified legal advisor in the specific country. As this blog post refers to international crypto laws, the content will only be available in English. If any questions occur, feel free to contact us in our social media channels.