There is an officially declaration by Deputy Minister of Treasury and Finance of Turkey Sakir Ercan Gül, that in the beginning of next legislature year, October 2021, a crypto bill will be introduced to The Grand National Assembly of Turkey (TBMM), which is the unicameral Turkish legislature to set up a regulatory framework on crypto assets.

This new crypto bill will focus on regulation and legislation on crypto and crypto related services. The distribution of crypto assets and issuing them, exchange and trading policies, and condition of off-chain storage solution of cryptocurrency or crypto custodian services is included in the bill. The main motive for passing this bill is to protect Turkey investors from facing money laundering and fraud activity issues in the market. To provide a better cryptocurrency environment this regulation will be made much stricter, focussing on tax related issues concerned with crypto.

Earlier this year, the Turkish minister of treasury and finance worked with various financial regulating bodies, central bank, Banking Regulation and Supervision Agency (BDDK) and Turkish Capital Markets Board (SPK) in forming the legal framework to regulate crypto transactions, for the Turkey crypto market. As a part of the process, the crypto asset companies will be supervised by SPK body. BDDK will set up a proper process to audit crypto industry investors and protect the consumers.

As per the new legal framework, crypto businesses must maintain a minimum capital requirement which will be assessed through a certain given time frame. Several protective measures like security clearance and collateralizing will be set up. 

Steps were taken to regulate crypto assets by Turkish ministers

The country’s central bank banned using cryptocurrency as a form of any payment within the country to regulate the market. Also, the payment company was banned from giving deposits or withdrawal services for crypto exchanges. Using wire transfer from Turkish user’s bank account, the users can deposit Turkish currency lira on a crypto exchange. 

Indrani bose

CBW - External Analyst

INDIA