In a significant move, Turkey has announced new regulations concerning cryptocurrencies. Although the regulation was anticipated to reach the parliament in 2021, it was only recently presented in the Turkish Grand National Assembly. This delay has led to some confusion regarding the provisions and their implications.
Cryptocurrency Law in Turkey
The newly introduced legislation comprises 19 articles aimed primarily at removing Turkey from the FATF grey list by June. Finance Minister Mehmet Şimşek has consistently emphasized that regulating cryptocurrencies is the final step needed for this removal. The law proposes significant measures to combat money laundering and mandates the licensing of exchanges.
What is the Cryptocurrency Tax Rate?
Contrary to some expectations, the new draft does not impose taxes on individual users. Instead, a 2% fee will be collected from exchanges’ earnings, which will be allocated to SPK and TÜBİTAK. The taxation of individual trading profits will be addressed in a subsequent regulation, which is yet to be scheduled. The anticipated rate for these taxes is expected to be minimal, but specific figures have not been released.
Global exchanges face new restrictions, including a ban on advertising in Turkey. Exchanges that have not established local operations will be barred from serving Turkish customers. This legislation aims to mirror similar regulatory practices in the United States, where exchanges like Binance have faced significant fines.
Are Global Exchanges Being Banned?
However, according to Ömer İleri, exchanges like Binance that have set up in Turkey can still offer their services to Turkish customers. This introduces complexities in enforcing the ban, as comprehensive monitoring will be required. The capability of SPK or local exchanges to handle such extensive oversight remains uncertain.
Concrete Implications for Users
– Local exchanges will need to adapt quickly to comply with new licensing requirements.
– Turkish users may face restricted access to global exchanges unless these exchanges establish local entities.
– Decentralized wallets and DeFi platforms remain accessible under current conditions.
– TÜBİTAK will have significant influence over cryptocurrency listings, impacting market dynamics.
Returning to the broader implications, decentralized exchanges currently remain unregulated, allowing Turkish users to continue using these platforms. Ömer İleri has confirmed there are no restrictions on decentralized wallets. Additionally, the draft includes provisions addressing asset segregation and embezzlement.
The newly introduced regulations mark a decisive step in Turkey’s efforts to regulate the cryptocurrency market. While aiming to enhance oversight and security, the specifics of enforcement and compliance remain subjects of ongoing debate and scrutiny.