Turkey Unveils Draft Law to Tax Crypto Gains and Introduce Transaction Levy

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Turkey’s governing AK Party has introduced draft legislation that would bring cryptocurrency earnings under a formal tax regime, proposing a 10% income tax on gains as well as a small transaction levy on crypto service providers.

The bill, submitted to parliament on Monday, stipulates that licensed crypto platforms must withhold 10% on income and capital gains arising from crypto-asset transactions. This withholding would be carried out on a quarterly basis, effectively embedding tax collection within the country’s regulated trading infrastructure.

For transactions carried out outside authorized platforms, the proposal outlines a separate mechanism. Investors generating profits through unlicensed or offshore venues would be required to declare those gains in their annual tax filings, ensuring that such income remains subject to domestic taxation rules.

Beyond investor-focused measures, the draft also targets industry participants. Crypto asset service providers would be subject to a 0.03% transaction tax on sale and transfer operations they execute or mediate, adding a marginal cost to trading activity within the ecosystem.

The initiative reflects Ankara’s broader push to strengthen supervision of digital asset markets after a period of rapid expansion. Demand for cryptocurrencies in Turkey has climbed sharply in recent years as households sought protection against soaring inflation and a weakening national currency.