In response to the continued depreciation of the Turkish lira, the government advances tax reforms to promote the popularity of cryptocurrency

Turkey is currently facing continued devaluation of its currency, the lira, a problem that has been further exacerbated by natural disasters such as recent earthquakes.

Amid economic woes and no sign of the currency appreciating in the short term, investors are turning to cryptocurrencies as potential safe-haven assets.

Although the issue of the imposition of a stock tax remains unresolved, Turkish President Erdogan and his officials have shown strong interest in taxing cryptocurrency transactions.

Türkiye Crypto Tax Details Revealed

In an effort to revive the economy and boost state revenue, Turkish lawmakers have proposed the biggest tax overhaul in more than two decades.

According to Bloomberg, the new tax regime includes Turkey’s first tax on cryptocurrency transactions.

The government hopes to inject an additional 226 billion liras, equivalent to about $7 billion and 0.7% of GDP, into its GDP through this reform, most of which is expected to be achieved through cryptocurrency taxes.

According to people familiar with the matter, the Turkish government is preparing for a large-scale reform of the tax system. A new tax bill is currently being drafted and is scheduled to be submitted to parliament for consideration later this month. At the same time, the government plans to impose a 0.03% tax on cryptocurrency transactions, which is expected to generate approximately 3.7 billion lire in revenue annually and is seen as an important step in the country's economic recovery.

Tax reform encounters market opposition

While tax revenue is expected to help ease the state's fiscal situation, the controversial nature of the tax law is expected to create some pressure. The government's initial proposal to impose a tax on stock trading met with strong opposition from market participants, causing the government to back down. This opposition may have an impact on the implementation of cryptocurrency taxation.

Despite facing market opposition, Erdogan’s government is determined to press ahead with tax reforms and regulate the cryptocurrency industry. Although the stock tax is temporarily pending, the government's determination to tax cryptocurrency transactions has not diminished, showing its firm attitude towards regulating and regulating the cryptocurrency industry.

Conclusion

The Turkish government, under economic pressure, is trying to find a breakthrough through tax reform and cryptocurrency taxation. However, how to find a balance between promoting innovation and increasing tax revenue will be a major challenge for the government.

With further clarity on the tax bill, the development of Turkey’s cryptocurrency market will be closely watched. This move by the government will undoubtedly have a profound impact on the popularity of cryptocurrency in Türkiye.

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