Turkey Drops Crypto Tax After Investor Backlash

The decision followed strong criticism and concerns about potential market impact.

Turkey temporarily backs away from crypto taxation

30.03.2026 - 10:55

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2 min

Key points:

Turkey’s parliament removed crypto tax provisions from a broader bill after pushback from both the market and opposition parties.
The proposal included a transaction fee and a profit tax, which could have applied even to transfers to personal wallets.

Turkey’s parliament has removed provisions on crypto taxation from a major bill covering taxes, government spending, and broader economic policy. The crypto-related measures sparked the most controversy.

Initially, authorities proposed a tax on all transactions conducted through crypto platforms. However, after sharp criticism from opposition lawmakers and industry participants, the provisions were withdrawn at the last minute—just before the parliamentary session.

Why the Crypto Tax Sparked Backlash

The proposal included a 0.3% fee on each transaction, as well as a profit tax requiring intermediaries to withhold 10% of users’ gains.

Experts pointed to a key issue: the tax could have applied even to transfers to personal wallets. In practice, this is similar to charging a fee for withdrawing cash from a bank account—a model rarely seen globally.

Analysts also warned that such measures could drive users to offshore platforms with more favorable regulations.

Despite dropping the proposal, authorities have not ruled out revisiting the idea through a separate bill. The government’s interest in the crypto sector is clear, as it has grown rapidly in recent years amid high inflation of the Turkish lira.

At the same time, experts caution that overly strict regulation could backfire. Instead of increasing tax revenues, the country risks losing capital as users move funds abroad.

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