As a seasoned crypto investor, I’ve seen my fair share of regulatory developments in the digital currency space. The news of Turkey’s new crypto bill has piqued my interest, given my past experiences with the volatile nature of this market and the increasing importance of regulatory compliance.
The legislation governing cryptocurrency usage in Turkey, recently approved by their parliament, includes penalties ranging from $7,500 to $182,600 and imprisonment for up to five years for offenses.
The crypto legislation proposed by Turkey’s ruling party leader Abdullah Güler was endorsed by Turkish legislators, according to an initial report from crypto.news Türkiye. This bill imposes penalties of up to $182,600 and a maximum prison term of five years for infringements.
The Turkish President, Recep Tayyip Erdoğan, now holds the power to approve or reject the recently proposed legislation. Should he give his consent, the announcement of this decision will be made public in the Official Gazette by week’s end, thereby enacting the bill into law.
In accordance with the latest legislation, cryptocurrency exchanges aiming for lawful operations within Turkey are required to secure a license from the Capital Markets Board, the nation’s financial regulatory and oversight body. Failure to comply with this regulation may result in unauthorized crypto platforms facing criminal penalties including imprisonment for terms ranging between three to five years.
As a researcher studying the regulatory landscape of cryptocurrencies, I would express it this way: Crypto service providers have the obligation to carry out and document actions like seizures and other law enforcement measures. Moreover, crypto exchanges and platforms must guarantee that all customer transactions, including deposits and withdrawals, are transparently traceable for legal authorities.
A potential transaction tax of 0.04% for crypto traders is not mentioned in the legislation, but it could still be implemented at an uncertain time and under undefined regulatory guidelines.
Since being added to the FATF’s “grey list” in 2021 for not adequately overseeing industries susceptible to money laundering activities, such as banking, real estate, Turkey has been actively exploring crypto regulations.
In November 2023, Mehmet Şimşek, Turkey’s Treasury and Finance Minister, announced that crypto legislation would be implemented in the country for the first time. Addressing the nation’s planning and budget commission, he revealed that Turkey had already met 39 out of the required 40 standards set by the Financial Action Task Force (FATF). The minister added that the country was now in its final stage of complying with these regulations.
In early 2024, I closely followed Şimşek’s announcement regarding the upcoming crypto regulations. He underscored the importance of these new rules in addressing risks connected to digital asset trading and safeguarding retail investors. Some of the essential components of these regulations were said to be:
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2024-06-27 10:48