The crypto bill regulating the use of cryptocurrency has been endorsed by the Turkish parliament, with fines ranging from $7,500 to $182,600 and prison sentences of three to five years for infractions. The bill, championed by ruling party leader Abdullah Güler, was passed as per a report from crypto.news Türkiye.
Following approval by legislators, the bill is now awaiting the signature of Turkish President Recep Tayyip Erdoğan. Once approved, it will be officially announced in the Official Gazette by the week’s end, thereby enacting the bill.
According to the newly passed legislation, crypto exchanges seeking legal operation in Turkey must secure a license from the Capital Markets Board, the country’s financial regulatory body. Unauthorized crypto platforms that offer trading services may face imprisonment of three to five years.
Furthermore, crypto providers will be tasked with implementing and reporting measures related to seizures and other legal enforcement actions. They must also ensure that customer fund transfers, including deposits and withdrawals, are easily accessible and traceable by legal authorities.
A transaction tax of 0.04% on investors’ crypto trades may potentially be imposed, although specifics regarding its regulation and enforcement remain unclear and were not included in the current bill.
Turkey has been deliberating crypto regulation since 2021, prompted by inclusion in the Financial Action Task Force (FATF) “grey list” for inadequate supervision of sectors prone to money laundering, such as banking and real estate.
In November 2023, Turkey’s Treasury and Finance Minister Mehmet Şimşek announced the introduction of crypto legislation, emphasizing the country’s near-compliance with FATF standards. In early 2024, Şimşek reiterated that the impending regulations seek to minimize risks associated with crypto trading and safeguard retail investors, with a focus on defining critical terms like “crypto assets,” “crypto wallets,” and “crypto asset service providers.”
In related news, Tether and Fuze have teamed up for an educational initiative in Turkey and the MENA region.