Turkish citizens increasingly use cryptocurrencies amid high inflation

Turkish citizens are increasingly using cryptocurrencies amid high inflation, with the use of Bitcoin and other cryptocurrencies increasing elevenfold in Turkey. There are currently no regulations regarding the taxation of cryptocurrency or NFT transactions. According to Eren Can Ersoy and Ezgi Kartın of Kılınç Law & Consulting, if cryptocurrencies are characterized as “securities” or “commodities”, the tax treatment is as follows: Securities: For cryptocurrencies to be securities, they must be treated as securities as "financial assets". As a result, gains from the purchase and sale of cryptocurrencies and commissions of more than 19,000 lire earned by cryptocurrency exchanges in 2021 are subject to income tax, but not VAT. Commodities: If cryptocurrencies are considered commodities and the taxpayer is not in the business of trading, then all gains over TL 43,000 in 2021 are subject to income tax. If the taxpayer is engaged in a trading business, the profits will be commercial gains and will be subject to income tax and VAT.