Turkey is drafting new legislation to strengthen the regulatory monitoring of cryptocurrency

May 26, 2022

Turkey is drafting new legislation to strengthen the regulatory monitoring of cryptocurrency.

Turkey is drafting new legislation to strengthen the regulatory monitoring of cryptocurrency

According to two sources familiar with the topic, Turkey is considering new crypto legislation that would increase regulatory monitoring in the crypto industry and perhaps levy certain digital asset transactions. Because this information is not yet public, the officials requested anonymity. According to reports, the ruling party, AKP, led by President Recep Tayyip Erdogan, is planning to introduce legislation establishing new regulations for local crypto exchanges. To discuss ideas that have not yet been made public, one of the suggestions would require crypto businesses to have a minimum of 100 million liras ($6 million) in the capital. Another rule will necessitate the establishment of branch offices in the nation for tax purposes.

Although the government has yet to determine how to tax individuals, it appears to be leaning toward levying a symbolic tax on crypto purchases. Furthermore, Turkish authorities are investigating secure ways to keep digital assets. Authorities are contemplating leveraging the banking industry’s infrastructure to prevent abuses, according to officials. The authorities stated that they learned about this from the schedule of a meeting conducted in President Erdogan’s office on May 24. Deputy President Fuat Oktay, Treasury and Finance Minister Nureddin Nebati, and Trade Minister Mehmet Mus were among those who attended the meeting.

Following the failure of two exchanges, Thodex and Vebitcoin, Turkey began discussing crypto legislation a year ago. Users were irritated when both exchanges abruptly shut down their operations. In the instance of Vebitcoin, four of the exchange’s employees were detained. Authorities, on the other hand, detained 62 persons from Thodex, a company that held more than $2 billion in customer cash. Faruk Fatih zer, the founder and CEO of Thodex, however, departed the country following the departure fraud. Since then, he’s been on the run. Despite the failure of the two exchanges and the recent crypto market fall, Turkey’s residents have been obliged to continue utilizing cryptocurrency as a means of payment and a store of value due to excessive inflation.


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