The Turkish parliament recently approved a new crypto bill that brings significant regulations to the crypto market in the country. The bill, introduced by ruling party chairman Abdullah Güler, includes hefty fines of up to $182,600 and prison terms of up to five years for those who violate the regulations.
In order to operate legally in Turkey, crypto exchanges must now obtain a license from the Capital Markets Board, the country’s financial regulatory agency. Failure to do so could result in severe consequences, including imprisonment for three to five years. The bill also requires crypto providers to implement measures such as seizures and other legal actions, as well as ensure that customer fund transfers are traceable by authorities.
Although not explicitly stated in the bill, there is a possibility of a 0.04% transaction tax being imposed on investors’ crypto trades in the future. The implementation of this tax remains uncertain at this point.
Turkey’s decision to regulate the crypto market comes after being placed on the Financial Action Task Force’s “grey list” for not effectively monitoring sectors prone to money laundering. The country has been working towards compliance with international standards, and the introduction of this bill is seen as a step in the right direction.
In a statement made in 2023, Turkey’s Treasury and Finance Minister Mehmet Şimşek highlighted the importance of introducing regulations to protect retail investors and reduce the risks associated with crypto trading. The upcoming regulations are expected to define key terms related to crypto assets, wallets, and service providers, providing clarity and structure to the industry.
Overall, the new crypto bill in Turkey signifies a significant shift in the regulatory environment for cryptocurrencies. With hefty fines and prison terms for violations, the government aims to bring accountability and transparency to the crypto market while safeguarding investors and ensuring compliance with international standards. It remains to be seen how these regulations will impact the crypto industry in Turkey moving forward.