Turkey’s tax authorities have told companies with cryptocurrency-related business to report information on their ultimate controllers as a part of their tax filings.
Fast facts
- An official document states that the requirement is part of meeting Organisation for Economic Co-operation and Development guidelines on tax transparency. Crypto companies must submit their first filings by Aug. 31 or face penalties.
- Turkey is tightening its regulation of cryptocurrencies. At the end of April, authorities required exchanges to report any cryptocurrency transactions worth more than 10,000 Turkish lira (US$1,200 at the time) and banned the use of cryptocurrency as a means of payment.
- Also in April, cryptocurrency exchanges Thodex and Vebitcoin collapsed. Thodex was allegedly involved in fraud worth US$2 billion.
- Cryptocurrencies are nevertheless flourishing in Turkey. According to survey results released this month, the use of cryptocurrency in transactions in Turkey rose 11-fold within a year. Chainanalysis data cited in a Financial Times report suggests that Turkey has the highest crypto transaction volume of any country in the region.
- Turkey is currently grappling with severe inflation. According to a Reuters report, its annual inflation rate reached a two-year high of 17.53% in June.