Turkey attracts investors. No taxes on digital currency profits

All eyes are on Turkey as a promising new destination for cryptocurrency enthusiasts, thanks to its very favorable tax policy which encourages investments in the stock market and in digital currencies.

Turkey attracts investors by removing taxes on digital currency profits

The Turkish government is considering imposing a small tax on transactions. But he wants to remove the possibility of being taxed Cryptocurrency Profits And stocks completely. The objective of this initiative is to stimulate investments and give a strong boost to local financial markets.

In 2008, It was Turkey He effectively abolished the tax on stock market profits. It reduced it from 10% to zero in order to give a significant boost to investments in the stock market.

However, this policy has clearly not changed, as Turkish Finance Minister Mehmet Simsek revealed this week that the government has no plans to tax dividends on stocks and cryptocurrencies. This strategy aims to encourage people to invest without having to impose taxes on the gains.

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Basically, Turkey wants its market to be very attractive, both for local residents and investors from around the world. By removing corporate taxes, Turkey hopes to boost economic activity and attract foreign capital. Thus, Turkey becomes a refuge for those seeking a stable, clear and comfortable tax environment.

Although the Turkish government has rejected the idea of ​​taxing dividends and cryptocurrencies, it is still considering a limited tax on transactions. Mehmet Şimşek says this will allow the state to ensure that no area is left tax-free. Details of this tax have not yet been published.

Most analysts say such an addition could shake up the market, increase commission costs and ultimately discourage investors from trading. The government will have to maneuver to find the right balance between “minimum” taxes and liberalization of economic activity.

Turks move towards adopting a regulatory framework for digital currencies

The Finance Minister also confirmed that the government is trying to finalize a regulatory framework that will make cryptocurrency trading more secure and in line with international standards. This includes the fight against money laundering and terrorist financing, which are important factors in getting Turkey out of... FATF gray list (FATF).

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The ruling party's bill stipulates that crypto companies must be licensed and meet minimum standards. These rules, under the supervision of the Capital Markets Board of Turkey (CMB), will determine the qualifications of founders and directors. As well as regulatory and capital requirements. The aim, however, remains to create a more regulated and safer market, which would help the sector to grow and become more stable.