Turkey Proposes 10 Percent Crypto Income Tax as Part of Major Regulatory Overhaul

Turkey is preparing to introduce a formal tax regime for digital assets, with the ruling Justice and Development Party submitting a proposal that would impose a 10 percent levy on income and gains derived from cryptocurrency transactions.

According to reporting from the state run Anadolu Agency, lawmakers in the Turkish Grand National Assembly have drafted an amendment to the country’s expenditure tax laws that would bring digital asset activity directly into the tax system for the first time.

Crypto platforms expected to withhold taxes

If the bill is adopted, exchanges and service providers operating in Turkey could be required to withhold 10 percent of users’ capital gains and income on a quarterly basis.

The proposal would also introduce a 0.03 percent transaction tax on services facilitated by crypto platforms, expanding the pool of taxable activities within the sector.

The legislation grants Turkey’s president broad authority to adjust the crypto income tax rate anywhere between zero and 20 percent depending on market and policy needs. Regulations and enforcement would fall under the country’s treasury, and the law is expected to take effect roughly two months after publication in the official gazette.

Rapid adoption drives regulatory action

Turkey is one of the world’s most active crypto markets. Chainalysis data shows that the country led the Middle East and North Africa region in digital asset transaction volume during the twelve month period ending June 2025, with nearly 200 billion dollars flowing through crypto platforms.

A prolonged period of high inflation has been a key driver of adoption. Consumer prices peaked at 85 percent in late 2022 before easing to around 30 percent earlier this year. Analysts say many Turkish citizens turned to crypto as a hedge against currency instability and as an alternative channel for savings, investment, and payments.

Chainalysis noted that Turkey’s volumes reflect both speculative trading behavior and a growing reliance on digital assets as a tool for navigating economic strain.

Part of a wider global trend

Turkey is not alone in reassessing how digital assets should be taxed. The Netherlands recently advanced a proposal to impose a 36 percent capital gains tax on most liquid investments including cryptocurrencies. That plan still requires Senate approval and may be revised before implementation.

If Ankara’s bill clears parliament, Turkey will become the latest major economy to formalize a tax framework for crypto markets at a time when governments are seeking greater oversight and more predictable revenue from a fast growing digital asset sector.