Key Highlights
- Turkey’s ruling AK Party proposes a 10% withholding tax on crypto income and a 0.03% transaction levy on platforms.
- Crypto gains made outside licensed platforms would be taxed through annual income declarations.
- The plan also expands powers for MASAK to freeze bank accounts and crypto wallets linked to illegal activity.
Turkey’s ruling AK Party has submitted a draft law to parliament proposing a new tax framework for cryptocurrency activity, including a 10% tax on crypto income and a transaction levy on crypto asset service providers.
The proposal, submitted on Monday, marks the latest step in Ankara’s broader effort to tighten oversight of the fast-growing digital asset sector.
10% withholding tax on crypto income
According to the draft text, authorized crypto platforms would be required to apply a 10% withholding tax on income and gains generated from crypto asset transactions, as per a Reuters report. The tax would be collected on a quarterly basis.
“Platforms must apply a 10% withholding tax on income and gains from crypto-asset transactions on a quarterly basis,” the draft law states.
For crypto transactions carried out outside authorized platforms, investors would be required to declare their profits in annual statements.
Along with the income tax, the draft law also adds a transaction charge for crypto service providers. Crypto platforms would have to pay a 0.03% tax on every sale or transfer they process or help complete.
This would apply to exchanges and other regulated crypto firms operating in Turkey.
Crypto growth behind tighter rules
Turkish authorities have gradually tightened control over the crypto market as usage has grown sharply in recent years. High inflation and the long slide in the lira have pushed many people toward digital assets, both for savings and for moving money outside the banking system.
Turkey now ranks among the leading countries globally for crypto adoption and transaction activity. Annual crypto transaction volumes reached close to $200 billion in 2025, well ahead of other markets in the region, according to a report by U.S.-based blockchain analytics firm Chainalysis.
MASAK to get broader enforcement powers
Beyond taxation, the government is also moving to strengthen enforcement. On September 25, authorities announced plans to expand the powers of MASAK, Turkey’s financial crimes watchdog.
Under the proposal, MASAK would be able to freeze and manage bank accounts and cryptocurrency wallets suspected of being linked to illegal activity. The measures are intended to strengthen action against money laundering and financial crime, and to bring Turkey’s oversight framework in line with international standards.
MASAK, which already monitors suspicious transactions, would be able to close accounts held at banks, payment companies, digital wallets, and crypto platforms. It would also be authorized to limit transactions, temporarily block mobile banking access, and blacklist cryptocurrency addresses associated with criminal activity.
Focus on rented accounts and fraud networks
According to reports cited by Bloomberg, the proposed changes primarily target so-called rented accounts. These are accounts where individuals allow criminals to use their bank or digital wallets for activities such as fraud, illegal betting, and money laundering.
Authorities say such accounts are commonly used to obscure the origin of funds, and that faster intervention could help prevent small-scale abuse from escalating into larger criminal schemes.
Part of upcoming judicial reform package
The proposed expansion of MASAK’s powers is expected to be included in Turkey’s 11th Judicial Package, which is scheduled to be submitted to parliament in the upcoming legislative year. The bill is still being discussed and may change before parliament gives its approval.
As it stands, it shows the government plans to keep a much closer watch on banks, payment firms, and crypto platforms, and to tighten rules around the digital asset market.
Also Read: UK Gambling Commission Considers Crypto as Payment Option
