The Turkish government has prepared a bill to introduce new regulations for the country’s crypto space. The law, which will be presented to parliament this fall, will introduce taxation on crypto holdings and specific capital requirements for companies working with digital assets.
New legislation to regulate the Turkish crypto market
Following in the footsteps of the West, Turkey plans to get its crypto space in order soon. Work on a bill aimed at strengthening investor protection, preventing dirty money laundering and improving control over trading in cryptocurrencies has been completed, said Deputy Finance and Finance Minister Şakir Ercan Gül.
Quoted by the daily Sabah, Gül stated that Turkish regulations will be similar to those being introduced in Western Europe and the United States, albeit “a little stricter,” the official noted, citing the country’s floating exchange rate system as a factor . Before the parliamentary planning and budget committee, Gül stated:
The ones who forbid [cryptocurrencies] are usually countries with democracy problems. There are free mechanisms in Western Europe and America.
The new draft law is to be presented to parliament in Ankara in October. Like some European jurisdictions, the Turkish government intends to introduce taxation on cryptocurrency holdings above a certain threshold. The legislature will examine various proposals, for example the introduction of a reporting requirement for crypto transfers over a certain value to the tax office of the country.
Turkish crypto companies to meet capital requirements
The new legislation will also define the different types of crypto assets and address issues related to the issuance and distribution of digital coins. The bill lists the main principles that merchants should adhere to and the conditions under which crypto platforms can offer custody services for digital currencies. Companies are given time to adapt to the new legal framework.
Companies that are involved in the crypto-economy must also meet minimum capital requirements, the deputy finance minister announced. Turkey’s Capital Markets Board will oversee their activities. The Commission of Inquiry into Financial Crime is tasked with setting up a monitoring mechanism for consumer protection that preserves market integrity and competition.
Turkey, one of the nations where cryptocurrencies have grown in popularity, banned the use of digital assets for payments in April with a regulation enacted by the central bank. The measure was enforced when the Turkish lira depreciated for months. Following the ban, Ankara updated its existing crypto regulations and added coin exchanges to a list of companies subject to its anti-money laundering regulations.
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