- Turkey is expecting a new crypto-related law to come into effect later this year.
- The Deputy Minister of Treasury and Finance will present the new bill to the Parliament in October.
- Crypto firms will be required to set aside minimum capital requirements and adhere to tax regulations.
Cryptocurrency companies will soon receive regulatory oversight by the Capital Markets Board in Turkey. The country is believed to have one of the highest exposures to digital assets worldwide.
Turkey introduces new crypto bill
Turkey has put forward a new bill targeting cryptocurrencies that will create a legal framework for digital assets in the country. 16% to 20% of citizens in the country have used or owned cryptocurrencies as of 2020.
Deputy Minister of Treasury and Finance Sakir Ercan Gul stated that the bill would be based on legislation in Europe and the United States. He added that stricter rules should be implemented.
He further added that the new law would be proposed to the Grand National Assembly of Turkey at the start of the next quarter.
Gul explained that the draft bill is meant to protect retail investors, prevent money laundering, and reinforce regulatory supervision for cryptocurrency exchanges.
The Capital Markets Board in Turkey will oversee digital asset firms, while the Banking Regulation and Supervision Agency will be auditing the cryptocurrency companies in the country and creating mechanisms to protect investors in the market.
The Board will also require crypto firms to set aside minimum capital requirements, and tax will be charged above a certain threshold.
In April, Turkey banned cryptocurrency holders from using their holdings as payments. The ban came into effect in late April, prohibiting any digital asset payments in the country. Banks have been excluded from the regulation despite the government preventing payment providers from offering fiat onramps for crypto exchanges.
The ban cited possible damages and significant transaction risks for the prohibition of using crypto as payment.
Turkish lira could still be used for deposits at cryptocurrency exchanges through wire transfers from their bank accounts.
Despite the rising interest in cryptocurrencies in the country, Turkey did not have specific regulations aimed at the digital asset market. The government is working on national blockchain infrastructure and a central bank digital currency (CBDC).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.