Amidst growing regulatory actions against cryptocurrency, Turkey seems to be taking the opposite route. When rumors surfaced regarding a 40% tax on all crypto gains in the country, many investors were worried about the future of cryptocurrency in the country. In the past, the cryptocurrency community has seen the effect of exorbitant taxes over crypto innovations and adoption rates. In Japan, for example, many crypto firms had to relocate owing to increased tax rates. The Senate in the United States is also split on this issue following the crypto taxation provisions made in the Infrastructure Bill. In the context of these developments, it is indeed surprising to see Turkey going the other way.
Turkish media outlet Hürriyet reported that there is no possibility of revised cryptocurrency taxation according to the Justice and Development Party (AKP). The AKP is the leading political force in the country and has the final say in most of the governmental decisions. Coming from them, it is now a certainty that the 40% taxation on crypto gains will not be imposed.
According to the AKP, the rumor was propagated and strengthened by rival political powers to dissuade the public. The present political scenario in Turkey is not very stable, with growing rates of inflation and communal tension. Many Turkish experts see cryptocurrency as a way of reviving the national economy and making it more stable. In such a scenario, it is a welcome relief for crypto investors in the country to see the taxation rumors scrapped.