Türkiye prepares for cryptocurrency regulation.
In financial and technology circles, it is well known that Turkey is one of the largest crypto economies in the world. Its rapid growth, combined with the lack of regulation in the cryptocurrency market, has led the Turkish government to take steps to establish legislation related to these digital currencies.
CURRENT REGULATIONS AND THE NEED FOR LEGISLATION
Although Turkey has not yet presented its cryptocurrency bill, it is important to note that there are currently "very light regulations" targeting this market in the country. These regulations are initiatives of the Central Bank of the Republic of Turkey and the Financial Crimes Investigation Board, among other supervisory bodies. However, these regulations lack a solid legal basis and their application and consequences remain ambiguous.
The lack of specific regulation in Türkiye has raised concerns in the financial and investor community. Faced with this situation, the Turkish government has shown its interest in addressing the regulation of cryptocurrencies to provide clarity and security to both investors and users of these digital currencies.
THE POSITION OF EXCHANGES AND FINANCIAL INSTITUTIONS
One of the key points in cryptocurrency regulation in Turkey focuses on exchanges, known as virtual asset service providers (VASPs). The proposed legislation will define responsibilities and standards for exchanges, including aspects related to the safe custody of crypto assets and investor protection.
In addition to exchanges, other financial institutions would also have limitations when it comes to operating with cryptocurrencies. The Turkish financial regulator, known as the Turkish Capital Markets Board (CMB), has established guidelines since 2018 that prohibit banks and stockbrokers from engaging in cryptocurrency transactions. These restrictions could be modified and updated with the arrival of new legislation.
THE INVESTOR PROTECTION ASPECT
The issue of investor protection has gained relevance in Turkey due to previous cases of failure and fraud in the cryptocurrency market. A notorious example is the collapse of the Thodex exchange in 2021, where thousands of users were affected and a million-dollar scam occurred. With the new legislation, it is expected that stronger protection mechanisms will be established for investors.
Tax implications and anti-money laundering
In addition to exchange regulation and investor protection, crypto legislation in Turkey will also address tax aspects. The implementation of low-rate transaction taxes on cryptocurrencies is planned, as well as the requirement that citizens declare their cryptocurrency earnings. However, the retention rate is expected to be set at zero, seeking to encourage the adoption and development of the cryptocurrency market.
Another important aspect of regulation has to do with the fight against money laundering and the financing of terrorism. The new measures will seek to ensure that virtual assets are not used for illicit purposes. This involves the implementation of know-your-customer (KYC) mechanisms by exchanges to prevent criminal activities and ensure transparency in transactions.
EXPECTATIONS AND FUTURE PROSPECTS
While no exact date has been set for the introduction and approval of crypto legislation in Turkey, it is expected to be a priority issue in the current parliamentary period. Some experts estimate that the regulation could be presented in the middle of the year, while others suggest that it could be extended until the end of the year or even into the fall.
It is important to remember that the opinions and assumptions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information provided should not be considered financial advice or an investment recommendation. Each person is responsible for conducting his or her own research before making investment decisions.
As Turkey moves towards cryptocurrency regulation, the market is expected to strengthen and greater protection will be provided to investors and users. The implementation of clear and effective regulations will allow Turkey to position itself as an important player in this emerging market, ensuring a solid and reliable environment for those interested in participating in the world of cryptocurrencies.
