Turkey has dismissed plans to impose taxes on profits from stocks and cryptocurrencies but suggested a “very limited” levy on transactions.

According to Bloomberg, Treasury and Finance Minister Mehmet Şimşek said during an interview in Ankara that the government is considering a “very limited” transaction tax on the assets.

“Our aim is to leave no area untaxed in order to provide justice and effectiveness in taxation,” Şimşek stated, without specifying its potential size. In 2008, Turkey reduced its tax rate on stock market profits from 10% to 0%.

Bloomberg reported on June 4 that authorities in the country were planning to impose a tax on gains from stock and cryptocurrency trading. During a meeting over the weekend, Minister Şimşek reportedly stressed the importance of properly taxing all financial income.

As of now, Turkey does not have specific regulations in place to tax cryptocurrencies. However, the country is actively working to establish a legal framework for digital assets.

On May 16, Turkey’s ruling party introduced a new bill to regulate the crypto market. The bill requires crypto businesses to get licenses and follow international standards, such as being regulated by capital markets boards.

The legislation also stipulates mandatory revenue collection from crypto service providers and a ban on foreign crypto brokers to foster a locally regulated ecosystem. According to local media reports, the move seeks to address Financial Action Task Force (FATF) concerns and expel the country 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. The country’s trading volume was estimated at $170 billion in 2023, surpassing economies like Russia, Canada, Vietnam, Thailand and Germany.

Turkish crypto holders have been prohibited from making payments using cryptocurrencies like Bitcoin  since 2021.

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