Turkey's ruling AK Party has proposed a new tax framework for cryptocurrency income and service providers. Under the draft law submitted to parliament, platforms would be required to apply a 10% withholding tax on income and gains from crypto-asset transactions quarterly.
Profits from crypto asset transactions conducted outside of authorized platforms will be subject to taxation through annual declarations. Additionally, crypto asset service providers would face a 0.03% transaction tax on sales and transfers they facilitate.
These measures come as Turkish authorities increase oversight of platforms, responding to a significant surge in cryptocurrency use driven by high inflation and currency depreciation. Turkey has emerged as a global leader in crypto adoption and transaction volumes.