Turkey has dismissed plans to impose taxes on profits from stocks and cryptocurrencies, instead exploring a "very limited" levy on transactions. Treasury and Finance Minister Mehmet Şimşek, in an interview with Bloomberg, emphasized the government's goal to ensure all financial areas are taxed to achieve justice and effectiveness in taxation.

During the interview in Ankara, Şimşek stated, "Our aim is to leave no area untaxed in order to provide justice and effectiveness in taxation," without detailing the potential size of the transaction tax. This move comes after Turkey reduced its tax rate on stock market profits from 10% to 0% in 2008.

On June 4, Bloomberg reported that Turkish authorities were considering a tax on gains from stock and cryptocurrency trading. However, Minister Şimşek clarified that the focus is on properly taxing all financial income, suggesting a shift towards a transaction-based tax instead of a profit-based one.

Currently, Turkey does not have specific regulations in place to tax cryptocurrencies, but it is actively working on establishing a legal framework for digital assets. On May 16, Turkey’s ruling party introduced a new bill aimed at regulating the crypto market. This bill requires crypto businesses to obtain licenses and comply with international standards, including regulation by capital markets boards.

The proposed legislation also includes mandatory revenue collection from crypto service providers and a ban on foreign crypto brokers, aiming to foster a locally regulated ecosystem. This move seeks to address concerns from the Financial Action Task Force (FATF) and remove Turkey from the regulator’s "gray list."

Turkey has a significant presence in the global cryptocurrency market, ranking fourth worldwide in estimated trading volume according to Chainalysis data. In 2023, the country's trading volume was estimated at $170 billion, surpassing economies like Russia, Canada, Vietnam, Thailand, and Germany.

Despite this active market, Turkish crypto holders have been prohibited from making payments using cryptocurrencies like Bitcoin since 2021. The new regulatory efforts indicate a strong push towards formalizing and controlling the crypto landscape within Turkey.

In conclusion, while Turkey has ruled out taxes on crypto and stock profits, it is considering a limited transaction tax to enhance the fairness and efficiency of its taxation system. The country's ongoing legislative efforts underscore its commitment to regulating the burgeoning digital asset market.