- The ruling party in Turkey, the AK Party, is preparing a bill for the Turkish Grand National Assembly that could significantly impact the country’s crypto world.
- The crypto bill focuses on taxation and foreign exchanges, with details starting to emerge.
- One notable aspect of the bill is the operation of foreign exchanges in Turkey, which will not be permitted due to a lack of regulation.
As Turkey prepares to introduce a new crypto bill, the focus on taxation and foreign exchanges could significantly impact the crypto world. The bill notably prohibits the operation of foreign exchanges in Turkey due to regulatory concerns.
Foreign Exchanges Not Permitted in Proposed Crypto Bill
As reported by CoinOtag, Turkey has been working on a crypto regulation for a long time. The product of this work, the bill, is coming to the Turkish Grand National Assembly today. There are interesting details in the bill. The announcement about the bill was made by AK Party Group Chairman Abdullah Güler and AK Party Deputy Chairman Ömer İleri. Güler made the following statements for the 19-article bill: Crypto exchanges will start serving by obtaining a license from SPK. The aim here is to ensure that investors trade safely under SPK supervision. Crypto asset service providers will be obliged to ensure the security of their information systems. In this regard, TÜBİTAK’s decisive criteria on technological infrastructure will be included in the law. The sale and distribution of crypto assets will be determined by SPK. A preliminary report will be obtained from TÜBİTAK in the issuance of crypto assets.
No Permission for Foreign Exchanges
The detail about the foreign exchange caught attention in the statement. Because, according to the details given by Güler, there is no permission for foreign exchanges. In this context, Güler said, “Since the supervision of crypto asset providers operating abroad cannot be fully ensured, the transactions of these companies will also be terminated.” Therefore, foreign-origin exchanges that have an office in the country and have the possibility of inspection will continue their activities, while exchanges that cannot be fully supervised and do not meet the required conditions will be blocked.
Other Highlights in Crypto Regulation
Among other details of the bill, prison sentences did not go unnoticed. Accordingly, those responsible from unlicensed companies will face 3 to 5 years in prison. Meanwhile, the most curious part of the bill was the tax dimension for crypto transactions. According to the explanations, there is no tax for now. However, there are some fees in the bill. Accordingly, there is a 2% income proposal for the Capital Markets Board (SPK) and the Scientific and Technological Research Council of Turkey (TÜBİTAK). Regarding the tax issue, Güler said: There is no regulation regarding taxation in our proposal. SPK’s 1%, that is, 1% of its unexempted income; Since TÜBİTAK will make a technological evaluation in digital terms, a total of 2% income is envisaged as a service fee, including 1% of its share.
Conclusion
The proposed crypto bill in Turkey could significantly impact the country’s crypto world, particularly with its focus on taxation and the prohibition of foreign exchanges. While the bill is still in its early stages, its potential implications for crypto exchanges and investors are noteworthy. It remains to be seen how these proposed changes will be received by the crypto community and what impact they will have on the crypto market in Turkey.
