Türkiye Proposes 10 Percentage Crypto Income Tax and Transaction Levy on Service Providers

Türkiye has proposed a new crypto taxation framework introducing a 10 percent withholding tax on profits from digital asset transactions and a 0.03 percent levy on crypto service providers. The measure reflects growing regulatory oversight as the country emerges as one of the world’s largest cryptocurrency markets.

Türkiye is preparing to introduce a new taxation framework targeting cryptocurrency transactions and service providers, marking a significant step in the country’s evolving digital asset regulation. A draft law submitted to parliament by the ruling Justice and Development Party (AK Party) proposes a 10 percentage withholding tax on profits generated from crypto asset transactions alongside a 0.03 percentage transaction levy on crypto asset service providers.

Under the proposal, platforms facilitating crypto trading would apply the withholding tax to gains generated on their platforms on a quarterly basis. Transactions conducted outside licensed platforms would remain taxable but would need to be declared by individuals in their annual tax filings.

The proposed legislation reflects the government’s growing focus on strengthening oversight of digital asset markets while expanding fiscal revenues from the sector.

Expected fiscal impact

According to the draft law’s impact analysis, the new crypto tax framework could generate at least TRY 4.2 billion(approximately US$95.6 million) annually for the government budget.

However, authorities note that revenue from taxes on crypto profits remains difficult to estimate because the withholding mechanism would be introduced for the first time and depends heavily on trading activity.

The draft legislation also includes additional fiscal measures unrelated to digital assets, such as a 20 percentage special consumption tax on certain precious stones, expected to generate roughly TRY 1.9 billion lira per year.

Cryptocurrency adoption in Türkiye

The introduction of a crypto taxation framework comes amid a rapid expansion of digital asset adoption in Türkiye. According to blockchain analytics firm Chainalysis, the country recorded approximately US$200 billion in cryptocurrency transaction volume in 2025, placing it among the largest crypto markets globally and the largest in the Middle East and North Africa (MENA) region.

Several structural factors have contributed to this rapid growth. Persistent inflation and the depreciation of the Turkish lira have encouraged many households to diversify savings into alternative assets such as gold, foreign currencies, and increasingly digital assets.

Türkiye also has a relatively young, digitally connected population with strong participation in retail trading platforms. Domestic crypto exchanges have expanded rapidly in recent years, helping to broaden access to crypto trading and investment products.

As a result, cryptocurrencies in Türkiye often serve both as speculative assets and as a hedge against currency volatility.

Regulatory framework for crypto assets

Although cryptocurrency trading is legal in Türkiye, the regulatory framework has evolved gradually over recent years.

The Central Bank of the Republic of Türkiye (CBRT) introduced a regulation in 2021 prohibiting the use of crypto assets as a means of payment in commercial transactions. The regulation does not ban crypto trading itself but restricts their use as payment instruments in the financial system.

In parallel, Turkish authorities have expanded regulatory oversight of crypto asset service providers. Platforms operating in the country must comply with anti–money laundering rules administered by the Financial Crimes Investigation Board (MASAK) and are subject to supervision by the Capital Markets Board (SPK).

More recently, Türkiye has introduced a more comprehensive regulatory framework for crypto asset service providers. Under the current regime, exchanges, custodians, and other crypto platforms must obtain authorization from the Capital Markets Board and meet operational, governance, and financial compliance standards designed to strengthen investor protection and market stability.

According to a CMS Guide to Crypto Regulation, crypto-asset service providers operating in Türkiye are required to apply for an operating permit and ultimately obtain full licenses within the new regulatory system. Companies that applied for establishment or authorization must meet licensing requirements and obtain their operating permits by June 30, 2026, as part of the transition toward a fully licensed crypto ecosystem.

The framework also introduces stricter compliance obligations for crypto platforms, including customer identification requirements, transaction monitoring, and risk-management measures designed to align Türkiye’s regulatory environment with international anti–money laundering standards.

Compliance and investor protection measures

Beyond licensing requirements, Türkiye has also implemented a series of operational safeguards for crypto asset service providers.

These include rules requiring exchanges to segregate client assets from company assets, protecting users’ holdings from being seized or included in bankruptcy proceedings involving the service provider.

In addition, MASAK regulations require crypto platforms to implement enhanced know-your-customer (KYC) procedures and transaction monitoring systems to detect suspicious activity and ensure compliance with anti–money laundering regulations.

Such measures reflect a broader policy objective of improving transparency and reducing financial crime risks in the rapidly expanding crypto ecosystem.

Digital finance development and the role of crypto

The growth of cryptocurrency activity in Türkiye is occurring alongside broader developments in the country’s digital finance ecosystem.

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Turkish authorities have increasingly promoted financial technology innovation in areas such as digital payments, open banking, and blockchain-based infrastructure. At the same time, the Central Bank of the Republic of Türkiye has been exploring the development of a central bank digital currency (CBDC) known as the Digital Turkish Lira, which has already entered pilot testing phases.

These initiatives reflect Türkiye’s broader strategy to modernize financial infrastructure while maintaining regulatory oversight of emerging digital asset markets.

Implications for investors and platforms

While the government views the proposed taxation measures as part of a broader effort to formalize the digital asset sector, some industry stakeholders have warned that early taxation could slow market growth.

Critics argue that additional taxes on crypto trading could encourage some investors to shift activity toward offshore platforms rather than domestic exchanges. At the same time, the introduction of taxation and licensing frameworks may increase institutional confidence by creating clearer regulatory standards.

Overall, the proposed legislation signals Türkiye’s transition toward a more structured regulatory environment for digital assets as the country continues to develop one of the world’s most active cryptocurrency markets.

Key takeaways for investors

• Türkiye has proposed a 10 percentage withholding tax on crypto trading profits executed through licensed platforms.
• Crypto asset service providers would also pay a 0.03 percentage transaction levy on trades they conduct or facilitate.
• The government expects the tax framework to generate at least 4.2 billion Turkish lira annually.
• Türkiye recorded approximately US$200 billion in crypto transaction volume in 2025, making it one of the largest digital asset markets globally.
• The country is also implementing licensing and compliance requirements for crypto platforms, with full licensing expected by June 2026.

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