Mehmet Şimşek, Turkey’s Finance Minister, announced during a parliamentary session on the ministry’s 2024 budget that the long-awaited cryptocurrency regulation will be presented to the Turkish Grand National Assembly in January 2024. This marks the first time a clear date has been provided for the introduction of crypto regulations.
Şimşek emphasized that contrary to popular belief, the tax burden in Turkey is not high. He highlighted that Turkey has the third-lowest tax burden among 38 OECD member countries, with a general tax burden of only 20.8%. He pointed out that the proportion of income and earnings taxes within the national income is just 5.8%, which is less than half the OECD average, underscoring the issue of insufficient direct tax revenues rather than an excessive indirect tax burden.
The Finance Minister attributed the inadequacy of direct taxes to exemptions and exceptions in income and corporate taxes, as well as to the informal economy. He stated that these exemptions and exceptions significantly explain the national income disparity.
Şimşek also declared their determination in combating the informal economy, noting that in 2023, they prepared reports and shared information with judicial authorities, law enforcement, and intelligence units concerning 14,525 individuals across 1,624 files. He asserted that they are conducting an effective fight against money laundering and the financing of terrorism, and have met the necessary technical conditions to be removed from the Financial Action Task Force’s (FATF) grey list.
In his speech, Şimşek also addressed cryptocurrency regulation, stating that Turkey has aligned with 39 of the 40 FATF standards. The only remaining deficiency is the regulation of cryptocurrencies. He expressed confidence that despite objections from other countries, Turkey’s progress will be recognized over time, and he believes that Turkey will be removed from the grey list next year, provided that they also implement effective enforcement of the new regulations.
