Stocks and Cryptos Will Be Taxed Soon in Turkey
Turkey might be taxing all transactions for cryptocurrency and the stock market in the coming days as new legislation is approved.
The Turkey government is putting the final touches on legislation that will tax all stock market and cryptocurrency transactions.
This information came from a government economic official and was reported to news services on Wednesday. The new legislation has been primarily the work of Finance Minister Mehmet Simsek, who has been campaigning for some means of stabilizing the price of stocks and cryptocurrency assets. He has also been calling for financial discipline in Turkish markets.
Inflation has run rampant in Turkey for years as financial institutions and the value of Turkish currency have been in complete upheaval. There have been repeated calls from Turkish government officials to tighten up the financial side of the economy and make it harder for consumers to lose their money.
The Turkish government is attempting to revamp the tax system and make it fairer for all, according to earlier statements from Simsek. Part of those efforts would create a minimum corporate tax.
How Will This Affect the Crypto and Stock Markets?
The Turkish economy accounts for a very small part of these markets, so the immediate impact of the legislation will be minimal. However, this could set a precedent that other countries follow.
Governments will be watching how the citizens and the markets react to the taxation laws, and they will use that information to determine if they want to create taxation laws of their own.
We could quickly start moving into a much more expensive global crypto and stock market system where each transaction is taxed. That would be an extra charge on top of the current transaction fees that brokers and currency exchanges already charge.
That could hinder growth in these markets, and that could compound with high inflation worries that are holding the markets back as well. Hopefully, government bodies will consider this time of global recession to be a bad time to initiate further taxation.
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