According to Turkey’s deputy finance minister, the legal bill protects individual investors, combat money laundering, and strengthen crypto exchange supervision.
A draft bill to establish a legal framework for crypto assets in Turkey has been released by the Turkish Ministry of Treasury and Finance.
The crypto bill will be proposed to the Grand National Assembly of Turkey (TBMM), the unicameral Turkish legislature, at the start of the next legislative year in October 2021, according to Deputy Minister Şakir Ercan Gül.
Given Turkey’s free-floating exchange regime, in which the lira’s value is determined by the fx market, Gül believes the country requires similar but more stringent regulation of crypto assets than Western Europe or the United States.
According to him, the final proposal intends to protect individual investors, combat money laundering, and strengthen crypto exchange supervision.
According to Cointelegraph Turkey, the impending bill outlines distinct types of crypto assets, as well as the issuance and distribution of crypto assets, trading policies, and the terms of crypto custodial services.
The Turkish Capital Markets Board (SPK) will be in charge of crypto-asset firms, while the Banking Regulation and Supervision Agency (BDDK) will be in charge of auditing crypto sector participants. BDDK will put in place safeguards for consumers and market integrity.
The new proposal also imposes minimum capital requirements on cryptocurrency enterprises, which will be given time to react. Several safeguards, including security clearance and collateralizing, would be in place under the new legislative framework.
Earlier this year, the Turkish Ministry of Treasury and Finance took a protective position towards digital assets. The ministry then stated that it is collaborating with Turkey’s financial authorities, central bank, BDDK, and SPK to develop a legal framework for cryptocurrency in the nation.
The Turkish central bank has outlawed the use of cryptocurrencies as a form of payment within the country as part of the regulatory measures.
It also prohibits payment providers from offering crypto exchanges with deposit or withdrawal services. Turkish users can now only use wire transfers from their bank accounts to deposit Turkish lira on crypto exchanges.
A favourable regulatory approach, particularly in taxation, according to several local experts, would make the country an appealing market for worldwide crypto investors.