The Turkish parliament has passed a crypto bill regulating the use of cryptocurrencies, with fines ranging from $7,500 to $182,600 and prison terms of three to five years for violations.

Legislators approved the bill introduced by ruling party chairman Abdullah Güler, which includes fines up to $182,600 and imprisonment of up to five years for violations. The bill has now been sent to Turkish President Recep Tayyip Erdoğan for approval. If approved, it will be published in the Official Gazette by the end of the week, bringing it into effect.

Under the new bill, crypto exchanges wishing to operate legally in Turkey must be licensed by the Capital Markets Board, Turkey’s financial regulatory and supervisory agency. Unauthorized crypto platforms offering trading services could face prison sentences of three to five years.

Crypto providers will also be responsible for implementing and reporting measures such as seizures and other legal enforcement actions. Additionally, crypto platforms must ensure that customer fund transfers — including deposits and withdrawals — are accessible and traceable by legal authorities.

Although not included in the bill, a transaction tax of 0.04% may be levied on investors’ crypto trades, though it is unclear when and how this will be regulated.

Turkey has been considering crypto regulation since 2021, after the Financial Action Task Force (FATF) included the country in its “grey list” for failing to supervise its banking, real estate, and other sectors vulnerable to money laundering practices.

In November 2023, Turkey’s Treasury and Finance Minister Mehmet Şimşek stated that the country was finally introducing crypto legislation. Speaking to the nation’s planning and budget commission, he noted that Turkey has met 39 of the 40 FATF standards and was in the “final stage” of compliance.

In early 2024, Şimşek emphasized that the upcoming regulations aim to mitigate the risks associated with crypto trading and protect retail investors. Key aspects of these regulations allegedly include legal definitions of crucial crypto-related terms such as “crypto assets,” “crypto wallets,” and “crypto asset service providers.”

For more updates and detailed news on cryptocurrency regulations and trends, keep exploring Global Crypto News.

Post Views: 4