Cryptocurrency phenomenon and taxation affairs

In the post-1980 period, which is described as the computer age, living standards have developed rapidly. Technological innovations have brought new developments in the economy and monetary fields as well as in all areas. Exchanges, which were first made with the barter method, started to be carried out quickly and reliably in digital environments over time. With the advanced technological developments experienced today and the article published by the user named Satoshi Nakamoto in 2008, blockchain-based cryptocurrencies have started to occupy the agenda. Cryptocurrencies, which are used in the blockchain network with the encryption method, provide fast and reliable transfer, and are also used as a value storage, exchange, investment and payment tool, have attracted the attention of users due to their stated features. However, cryptocurrencies with high transaction volume in the market have also attracted the attention of tax authorities. However, the inadequacy of legal regulations required for taxation of cryptocurrencies and the difficulties experienced in defining cryptocurrencies are among the taxation problems. Countries' approach to taxation of cryptocurrencies within the framework of current tax legislation leads to the inability to tax cryptocurrencies at an optimum level, and in this context, some tax problems arise. In this sense, the inadequacies of the current tax legislation of the countries and the approaches of national and international organizations cause different evaluations on taxation. Therefore, it is possible to compensate for the problems that may occur in the case of taxation of cryptocurrencies, which are seen as a potential source of tax revenue for states, tax losses and threats created due to its structure, after legal regulations. In this study, the phenomenon of crypto money is explained and first of all, the working logic of crypto money, its connection with payment instruments and the advantages and disadvantages it provides are discussed. Afterwards, the approaches of countries and institutions towards cryptocurrencies and the evaluations in terms of tax legislation in Turkey, and the difficulties experienced in the taxation process of cryptocurrencies and the problems that may arise in case of taxation are examined theoretically.