Turkey’s Treasury and Finance Minister Mehmet Şimşek is reportedly considering a new tax on gains from investments in stocks and crypto as part of efforts to support disinflation.

Gains from trading crypto and stocks may soon be taxed in Turkey as the country struggles with high inflation. The proposal, aimed at ensuring proper taxation of all financial income, was discussed during a recent ruling-party meeting, sources revealed.

The details of the plan remain under discussion, with new regulations expected to be addressed after parliament reviews legislation on crypto this week.

Turkey has been considering putting regulations on crypto to be removed from the Financial Action Task Force’s (FATF) β€œgrey list.” In mid-2022, the AK Party of President Recep Tayyip Erdogan proposed a minimum capital requirement of 100 million lira (approximately $3 million) for crypto businesses. However, no final decision has been made yet on the matter.

In early November 2023, Şimşek mentioned the country was finally introducing crypto legislation. Speaking to the nation’s planning and budget commission, he noted that the country has met 39 of the 40 FATF standards and was in the β€œfinal stage” of compliance.

In early 2024, Şimşek emphasized that the upcoming regulations aim to mitigate the risks associated with crypto trading, protecting retail investors. Key aspects of these regulations allegedly would include legal definitions of crucial crypto-related terms such as β€œcrypto assets,” β€œcrypto wallets,” and β€œcrypto asset service providers.”

Turkey has been on FATF’s β€œgrey list” since 2021, a status that has eroded confidence in its already fragile economy. Amid high inflation rates, cryptocurrencies have gained significant traction in Turkey, becoming an alternative financial refuge for many.

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