India and Turkey Making Strides to Tax Cryptocurrency
In recent years the UK, EU, and the US have embraced cryptocurrency, introducing and establishing legislation to regulate and establishing oversight for digital assets, however other parts of the world have been slow to react to the growth of the cryptocurrency industry.
In 2021, India introduced the Official Digital Currency Bill that planned to have the central bank of India create their own digital currency. The bill has not seen clear movement since that time and concerns were voiced about the network effect needed to justify integrating cryptocurrency into India’s economy. However, in the 2022 Union Budget, the government of India announced a 30% tax on gains from cryptocurrencies and a 1% tax deduction at the source. A set of standards were established for how to apply the new taxation policy onto digital assets.
Similarly in Turkey, the country has been facing a heavy budget deficit caused by the earthquakes in 2023 and is exploring a proposal to shift the current approach on financial transaction regulation. To help bridge this gap, the government of Turkey is preparing to introduce a 0.03% transaction tax on cryptocurrency trading. The proposed tax reforms are expected to generate 226 billion liars ($7 billion) which is equivalent to roughly 0.7% of the country’s Gross Domestic Product. This reform marks the largest tax change in Turkey in the last two decades.
The growth of the taxation on cryptocurrency comes in stride with crypto being recognized as a significant method of income for these countries. As more countries adopt crypto legislation and put efforts into building crypto regimes, it becomes increasingly necessary to have security measures to keep business and consumers safe and informed. ValidEntry provides a cost effective and simple integration solution to these needs.
ValidEntry can empower your team with user access management tools specifically designed for Web3.0 and decentralized applications (dApps). Our platform allows for tailored levels of granularity in user access control. This customization encompasses features like zero-knowledge proof KYC for dApps, enhancing user privacy while ensuring the security and integrity of the decentralized ecosystem. With an adequate level of KYCcompliance, your company can protect itself from heavy security crackdowns brought forth by these and future regulations.
https://cointelegraph.com/news/turkey-targets-crypto-with-transaction-tax
https://www.forbes.com/advisor/in/investing/cryptocurrency/crypto-bill/
