Parliament Approves Crypto Legislation with Penalties of Up to 182k in Fines and Possible Prison Sentences
The Turkish parliament has approved a comprehensive crypto bill aimed at regulating cryptocurrency usage, imposing fines ranging from $7,500 to $182,600 and imposing prison sentences of three to five years for violations. The bill, proposed by ruling party leader Abdullah Güler, was first reported by crypto.news Türkiye.
Pending approval from Turkish President Recep Tayyip Erdoğan, the decision is set to be published in the Official Gazette by week’s end, thereby enforcing the new regulations. According to the bill, crypto exchanges seeking legal operation within Turkey must obtain licenses from the Capital Markets Board, the country’s financial regulatory authority. Unauthorized platforms offering crypto trading services could face imprisonment ranging from three to five years.
Furthermore, crypto providers are mandated to implement and report on measures such as asset seizures and other legal actions. They must also ensure that customer fund transfers, including deposits and withdrawals, are traceable and accessible to legal authorities.
In addition to these provisions, there may be a 0.04% transaction tax imposed on crypto trades, although specific details on its implementation remain unclear.
Turkey’s efforts towards crypto regulation began in 2021 following its inclusion in the Financial Action Task Force (FATF) “grey list” due to inadequate supervision of sectors susceptible to money laundering risks, such as banking and real estate. In November 2023, Treasury and Finance Minister Mehmet Şimşek announced the forthcoming legislation, highlighting Turkey’s progress towards meeting FATF standards and nearing full compliance.
Şimşek emphasized that the new regulations aim to mitigate risks associated with crypto trading and safeguard retail investors. Key aspects of the legislation include defining crucial terms such as “crypto assets,” “crypto wallets,” and “crypto asset service providers.”
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