Turkey to present a new cryptocurrency legal framework in Q4 2021: Cryptocurrency corporations will quickly obtain regulatory oversight by...
- 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 & Supervision Agency will be auditing 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 taxes 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).
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