A bill containing crypto regulations has been drafted by the Government of Turkey. Through the draft bill, the Government intends to provide for rules and regulations comprising the crypto development and space in the country. The bill is due to be presented to the Turkish Parliament in the month of October 2021. Bill features for the imposition of a tax upon crypto holdings and fulfillment of certain requirements by crypto companies with regard to their working capitals.
Being part of Europe, Turkey too is intending to provide for crypto regulation as soon as possible. The Government believes that the time is right to bring its crypto market in order and in line with other European states.
It has been told by the Turkish Government that it has prepared the draft bill containing regulations and rules for crypto activities. Sakir Ercan Gul, Dy. Treasury & Finance Minister said that the draft has been prepared while considering various important factors. For instance, the objective of the bill is to ensure the protection of crypto users by making the law stronger and efficient. The second objective of the proposed law is to prevent dirty activities such as money laundering and terror financing. Thirdly, strengthening the regulators for improved supervision and monitoring of crypto activity as well as of crypto users and crypto companies.
According to Deputy Minister, proposed Turkish regulations for crypto will be on the same lines as that of the US and Europe. However, he added that the Turkish crypto regulations will be more stringent as compared to other states.
While addressing the Planning & Budget Committee of the Turkish Parliament, Gul commented on the banning of crypto in some countries. He was of the view that the countries which are banning crypto have their own issues. He also commented that most of the crypto-banning countries are those with a democratic setup. However, countries with the Presidential form of governments usually have free mechanisms and that is why they have no problems with crypto.
In the meanwhile, the Government informed that the proposed bill will be presented to the Turkish Parliament in the month of October this year. As regards the provisions contained in the draft law, the Government apprised that the law will provide for various things. For instance, the law provides for the imposition of crypto taxes upon persons holding virtual assets. In addition, there are been certain requirements that have been mandated by crypto companies. For example, a limit of capital injection has been made compulsory upon already operational crypto exchanges and future crypto businesses. Furthermore, crypto holders will need to disclose their virtual assets’ ownership along with their income and wealth tax statements.
However, currently, trade and usage of crypto assets within Turkey are banned by the order of the Turkish Central Bank.