The Turkish Parliament Will Consider a New Cryptocurrency Bill

According to a senior government source, the Turkish Parliament’s impending crypto laws do not contain a 40% tax on cryptocurrency.

Turkey’s cryptocurrency investors may collectively exhale a cautious sigh of relief. In the next weeks, Parliament will get a legislative framework that prioritises the openness, security, and auditability of cryptocurrency trading platforms. A secondary objective of the framework is to foster the establishment of blockchain enterprises by establishing a suitable financial environment. This does not include a rumoured 40% tax, according to Mustafa Elitas, the governing Justice and Development Party’s parliamentary leader (AKP). Elitas said in a tweet on Dec. 6, 2021, that the proposed legislation would be “aimed at regulating the [local cryptocurrency] system, avoiding fraudulent conduct, safeguarding investors, and resolving disputes.”

Following a meeting of 13 cryptocurrency CEOs and top government and financial sector officials, Elitas said that those in attendance preferred a skeletal architecture that would allow for rapid adjustments in a fast-paced business. According to Elitas, Parliament will have the last decision on any proposed rule. To eliminate counterparty risk, the government intends to create a central custodian bank.

Turkey’s Exchanges Are Exploding

Turkey has approximately five million cryptocurrency accounts. Binance, or BN Teknoloji, was recently penalised almost $634000 by the Financial Crimes Board (MASAK). By daily trading volume, Binance is Turkey’s biggest cryptocurrency exchange. Binance Turkey responded by stating that it “‘openly’ interacts and cooperates with regulatory and supervisory authorities and works to ‘build a sustainable, healthy, and safe environment.” Turkey is home to around 30 cryptocurrency platforms. Following the depreciation of the Lira on Dec. 21, 2021, the number of transactions topped one million. Chainalysis and Kaiko data indicate that bitcoin and USDT have been the most popular cryptocurrencies for Lira trading since 2019.

On May 4, 2021, MASAK required cryptocurrency exchanges to conduct Know-Your-Customer checks and flag high volume trading and suspicious transactions in response to the collapse of exchanges such as Thodex and Vebitcoin, which resulted in the loss of thousands of investors’ funds. Following an unexpected halt in trade, Thodex’s CEO escaped to Albania with $2 billion. Exchanges that are not compliant may risk penalties and punishment. On April 30, 2021, the central bank will prohibit the usage of cryptocurrency for payment. The central bank’s governor has said that the bank has no intention of banning cryptocurrencies.

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