The Turkish Parliament has approved new cryptocurrency regulation rules set to take effect by the end of 2024. These measures aim to tighten control over digital assets and increase transaction transparency, which will help Turkey to exit the “grey list” of the Financial Action Task Force (FATF).
Key Provisions of the New Regulation
1. Definition of Cryptocurrencies and Services: The new legislation provides clear definitions for cryptocurrencies and services related to virtual assets, including crypto exchanges. This will allow for more effective regulation of cryptocurrency transactions and establish a legal basis for their taxation.
2. User Identification: A key aspect of the new rules is the mandatory identification of users on cryptocurrency platforms. This involves collecting data such as passport details, residence information, and other personal information, which will be forwarded to regulatory authorities for analysis.
3. Taxation: The legislation introduces taxes on cryptocurrency transactions, including exchange, sale, and cashing out of cryptocurrencies. There will also be taxes on income from crypto assets, which will increase budget revenues and provide better market control.
4. Capital Increase and Exchange Requirements: Companies intending to operate with cryptocurrencies will face new requirements for their charter capital. This will ensure the financial stability of exchanges and other platforms dealing with cryptocurrencies.
5. Ban on Anonymous Transactions: A ban on anonymous transactions is introduced to combat money laundering and terrorism financing. Exchanges are required to report suspicious activities, and failure to comply with these requirements will result in severe penalties and criminal liability.
6. Support for the Development of the Digital Lira: The Central Bank of Turkey continues its work on its own digital currency, the digital lira, which is expected to integrate digital assets into the country’s economy and enhance the transparency of financial transactions.
Market Reaction and Future of Cryptocurrencies in Turkey
The introduction of new rules has elicited mixed reactions from the market. Some major local exchanges, such as Thodex, have already faced issues due to the lack of strict regulation and have had to cease operations. The new rules are expected to improve the investment climate and ensure consumer protection in the cryptocurrency market.
Turkey has long been considered a leader in the number of cryptocurrency users, and the new regulations may further increase public interest in digital assets, while also providing protection against fraud and illegal operations.
With the adoption of these new rules, Turkey is making a significant step forward in cryptocurrency regulation, creating a more transparent and secure environment for digital asset operations and aligning with international standards.
Conclusion
Turkey’s new cryptocurrency regulation rules are an important step towards establishing a sustainable and secure cryptocurrency market. They aim to protect users’ interests, increase transaction transparency, and combat financial crimes, thereby strengthening Turkey’s position in the global cryptocurrency market.
