03-05-2026 
|
Getting your Trinity Audio player ready...
|
Turkey is signaling a major shift in its approach to cryptocurrencies as parliament prepares to debate over a landmark bill that would see the imposition of new levies on digital asset trading—a move that would put investors’ portfolios under fresh scrutiny.
The tabled bill, introduced by the ruling Justice and Development Party (AK Party), is an amendment to the Income Tax Law and Expenditure Taxes Law, and represents the government’s most ambitious effort yet to formalize the country’s flourishing digital asset market.
While the regulatory development opens Turkey to bigger opportunities amid the evolving crypto landscape globally, it also poses a challenge to investors.
Under the proposal, licensed virtual asset service providers (VASPs) would be required to collect a 0.003% transaction tax on all digital currency trades and transfers. This tax will be calculated based on the value of each transaction, and VASPs are mandated to remit this levy to the tax office monthly.
Furthermore, income from crypto gains will be subject to a 10% withholding tax in a bid to align digital asset earnings with traditional forms of investments existing in the market, including stocks and real estate. According to local news outlet Anadolu Ajansi, the bill will apply to both individual traders and companies, creating a uniform framework for the treatment of crypto profits.
To add flexibility to the new system, the bill also grants President Recep Tayyip Erdogan the authority to adjust the 10% withholding tax rate, potentially lowering it to zero or bumping it up to 20%. This adjustment will largely depend on the type of token, how long it was held, the issuing entity, or the type of wallet used.Turkey will hand the Treasury and Finance Ministry the power to oversee the implementation of the bill, ensuring that VASPs report transactions correctly to allow the government to calculate tax obligations accurately.
Should the proposed bill pass, it would take effect two months after publication, giving investors and platforms a short period to prepare for the new rules. Currently, the draft bill is being examined by the Grand National Assembly of Turkey.
Meanwhile, as investors and VASPs begin to consider how the latest regulation would affect them in the long run, the proposal may draw mixed reactions from Turkey‘s crypto community due to its potential to cut into traders’ profits, while others may see this as a way to encourage more legitimate investment and boost confidence in regulated platforms.
The final vote is projected to signal how far Turkey is willing to go in regulating digital assets, shaping both the country’s crypto landscape and its broader approach to decentralized finance (DeFi) in the coming years.
Watch: What’s ahead for crypto regulation? Highlights from Blockchain Futurist Conference 2025
Recommended for you
