In response to the continuous devaluation of the Turkish lira, the government is promoting tax reform to promote the popularization of cryptocurrencies.

Turkey is currently facing a continuous devaluation of its currency, the Turkish Lira, which has been further aggravated by recent natural disasters such as earthquakes.

Against the backdrop of economic distress and no short-term signs of currency appreciation, investors are beginning to seek cryptocurrencies as potential safe-haven assets.

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

Turkish cryptocurrency tax details revealed

In order to revive the economy and increase national income, Turkish legislators have proposed the largest tax reform plan in over twenty years.

According to Bloomberg's report, this new tax system includes Turkey's first measure to tax cryptocurrency transactions.

The government hopes to inject an additional 226 billion lire into its GDP through this reform, equivalent to about 7 billion US dollars, or 0.7% of GDP. It is expected that most of it will be achieved through cryptocurrency taxation.

According to informed sources, the Turkish government is preparing to overhaul the tax system on a large scale, and a new tax bill is currently being drafted, with plans to submit it to parliament for review later this month. At the same time, the government plans to levy a 0.03% tax on cryptocurrency transactions, expecting to generate approximately 3.7 billion lira in revenue annually, seen as an important step in the country's economic recovery.

Tax reform encountered market opposition

Although the expected tax revenue is expected to help alleviate the country's financial situation, the controversial nature of the tax law is expected to bring some pressure. The government's initial proposal to impose taxes on stock trading was strongly opposed by market participants, leading to a retreat by the government. This opposition may have an impact on the implementation of cryptocurrency taxation.

Despite facing market opposition, the government led by Erdogan remains determined to push forward with tax reforms and regulate the cryptocurrency industry. Although the stock tax is temporarily uncertain, the government's determination to tax cryptocurrency transactions demonstrates its firm attitude towards regulating and standardizing the cryptocurrency industry.

Conclusion

Under economic pressure, the Turkish government is trying to seek breakthroughs through tax reform and taxation of cryptocurrencies. However, finding a balance between promoting innovation and increasing tax revenue will be a major challenge for the government.

With further clarification of the tax bill, the development of the cryptocurrency market in Turkey will be closely followed. This move by the government will undoubtedly have a profound impact on the popularization of cryptocurrency in Turkey.