Cryptocurrency Market and Tax Regulations in Turkey: an Analysis in the European Emerging Economy

• Authors: Burcu Zengin , Sahnaz Kocoglu

Abstracts

EN

The aim of the article: The purpose of this study is to provide a thorough review of the current state of cryptocurrency market and how governments perceive and deal with the threats and opportunities brought by the block chain technology. Cryptocurrencies were certainly the most popular investment in the last decade with a skyrocketing trading volume. However, cryptocurrency abilities in money laundering, financing terrorism and tax evasion overshadow the great opportunities and potential of this new technology. Therefore, the major economies in the world have been working on an efficient and effective strategy to control and tax the cryptocurrency market. In this study, the current state in Turkey regarding cryptocurrency taxation is analysed and a tax system is proposed. The authors claim that the Tobin tax, or in other words, low tax rates would be the best tax system to be applied in Turkey. Methodology: The study is based on a detailed literature review on the subject, academic papers, news releases and legal acts of the USA, Europe and Turkey. Different attitudes of varied groups are discussed and proposed solutions in the subject are being considered. Results of the research: Cryptocurrency market has a great potential and block-chain technology is full of opportunities. However, it is essential to control this market without harming the appeal of cryptocurrencies, yet this is not an easy task. Therefore, we argue that Turkey should extend the usage of cryptocurrencies, create a tax strategy with low tax rates and we claim that a regulation similar to the Tobin tax application would be effective here.

Keywords

EN

cryptocurrency; bitcoin taxation; tax law; Turkish law

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Finanse i Prawo Finansowe
• Year: 2022
• Volume: 3
• Issue: 35
• Pages: 83-106

Dates

published

2022

Contributors

author

Burcu Zengin

• Ankara Hacı Bayram Veli University Turkey, Faculty of Economics and Administrative Sciences, Department of Business Administration

• https://orcid.org/0000000152756748

author

Sahnaz Kocoglu

• Ankara Hacı Bayram Veli University Turkey, Faculty of Economics and Administrative Sciences, Department of Business Administration

• https://orcid.org/0000000220611242

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Identifiers

DOI

10.18778/2391-6478.3.35.06

Biblioteka Nauki

2121843