The Turkish government has prepared a bill aimed at implementing new regulations for the country’s crypto space. The legislation will be submitted to parliament this fall and will impose taxes on crypto assets and impose specific capital requirements on companies operating digital assets.
New legislation regulating the Turkish crypto market
Following in the footsteps of the West, Turkey plans to organize its encryption space soon. The Deputy Minister of Finance Şakir Ercan Gül announced that the work on the draft law aimed at strengthening investor protection, preventing money laundering and improving the control of cryptocurrency transactions has been completed.
The Sabah Daily quoted Gul as saying that Turkish regulations will be similar to those being implemented in Western Europe and the United States, although “slightly stricter,” the official cited the country’s free floating exchange rate system as a factor. Gul said in a speech to the Parliamentary Planning and Budget Committee:
Those forbidden [cryptocurrencies] Generally it is a country with democratic issues. There are free mechanisms in Western Europe and the United States.
In October, the new bill will be submitted to the Ankara Parliament. Like some European jurisdictions, the Turkish government intends to impose taxes on cryptocurrency assets that exceed a given threshold. Legislators will review various proposals, such as introducing mandatory reports to the State Administration of Taxation for the transfer of cryptocurrencies exceeding a certain value.
Turkish crypto company meets capital requirements
The new legislation will also define different types of encrypted assets and deal with matters related to the issuance and distribution of digital currencies. The draft law sets out the key principles that traders should abide by and the conditions under which crypto platforms can provide custody services for digital currencies. Companies will have time to adapt to the new regulatory framework.
The Deputy Minister of Finance revealed that companies participating in the crypto economy must also meet minimum capital requirements. The Turkish Capital Market Committee will be responsible for overseeing its activities. The Financial Crime Investigation Commission will be responsible for establishing a consumer protection supervision mechanism to maintain market integrity and competition.
Turkey is one of the countries where cryptocurrency is very popular. It banned the use of digital assets for payment in April according to a regulation issued by the Central Bank. As the Turkish lira continued to depreciate for several months, the measure was implemented. After the ban was issued, Ankara updated its existing encryption regulations to add coin exchanges to the list of entities subject to its anti-money laundering rules.
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