Turkey is nearing the finish line of its crypto regulation, emphasizing international alignment and comprehensive oversight for blockchain development.
Turkish Minister of Treasury and Finance Mehmet Şimşek stated that the framework for cryptocurrencies designed for the Turkish market is almost finished, with work now concentrated on assessing the technical aspects of its deployment in an interview with the Anadolu Agency on January 10.
Şimşek stressed that the new rules are meant to safeguard regular investors by reducing the dangers involved in trading cryptocurrencies. Legal definitions of keywords relating to cryptocurrencies, such as “crypto assets,” “crypto wallets,” and “crypto asset service providers,” are among the key components of this legislation.
The guidelines also require cryptocurrency platforms to obtain licenses from Turkey’s Capital Markets Board (CMB). Şimşek clarified that although the rules give crypto traders a clear framework, they won’t create a special tax system for virtual assets.
Additionally, he gave an example of how crypto assets will be characterized, which is as intangible assets that might represent rights or value and that are dispersed via digital networks and electronically created and maintained using distributed ledger technology or a similar system.
Following Turkey’s contemplation of crypto regulation from May 2022, this move towards regulation has been made. A minimum capital requirement of 100 million liras, or $3.4 million, has previously been proposed by the AK Party, led by President Recep Tayyip Erdogan, for cryptocurrency enterprises.
However, this suggestion has yet to be made public. Announcing the implementation of crypto law in early November 2023, Şimşek emphasized Turkey’s compliance with 39 out of 40 FATF requirements.
After being on the FATF’s “grey list” since 2021, the nation hopes to be removed. The economy of Turkey, already burdened by high inflation rates, has been negatively damaged by this situation.
In Turkey, cryptocurrencies are becoming increasingly common in the face of these economic difficulties, providing many with an alternative financial option.
Turkey was in fourth place internationally in cryptocurrency transaction volumes between July 2022 and June 2023, with over $170 billion in activity, according to Chainalysis, a blockchain analytics company. The United States, India, and the United Kingdom were the only countries ahead of Turkey.