Cryptocurrency Regulation Coming to the Turkish Grand National Assembly This Week: Here are the Details

cryptocurrencies A regulation determining its legal framework comes to the agenda of the Parliamentary Planning and Budget Commission this week. With the changes to be made in the Capital Markets Law, the legal definition of crypto assets will be made.

With this regulation, the establishment and activities of crypto asset service providers will need to obtain permission from the Capital Markets Board. Authority for the issuance, sale and distribution of crypto assets will be given to the Capital Markets Board.

Making a statement last week, AK Party Group Chairman Abdullah Güler shared the details of the bill. According to Güler, the bill contains 19 articles.

• Cryptocurrency exchanges will start providing services by obtaining a license from the CMB. This aims to ensure that investors can trade safely under the supervision of the CMB.
• Crypto asset service providers will be obliged to ensure the security of their information systems. In this context, the criteria to be determined by TÜBİTAK regarding technological infrastructure will be specified in the law.
• The sale and distribution of crypto assets will be determined by the CMB. For crypto asset issuance, a preliminary report will be received from TÜBİTAK.
• Contractual provisions that limit or eliminate the liability of crypto asset service providers to their customers will be deemed invalid. Control mechanisms will be established to examine investors’ complaints and objections. Measures will be taken against market-distorting transactions.
• The procedures and principles regarding crypto investment consultancy will be regulated by the CMB.
• Customer assets cannot be seized due to the debts of cryptocurrency exchanges.
• CMB will monitor exchanges operating without permission.
• Providing crypto asset services without permission will be considered a crime under the Turkish Penal Code and the penalty will be imprisonment from 3 to 5 years.
• There will be a transition period for organizations currently operating. Those operating will apply to the board within 1 month or take a decision on liquidation within 3 months.
• The activities of crypto asset providers operating abroad will also end with the transition period.

The following was said about the taxation of cryptocurrencies:

“The statement in the proposal, ‘Each year, one percent of all revenues of the platforms, excluding the interest income of the previous year, will be paid to the Board and one percent will be recorded as income by paying to the TUBITAK budget by the end of May of the relevant year’, relates to the payments to be made by the platforms. “In the proposed law, there is no tax regulation for end users who buy and sell through the platforms.”

*This is not investment advice.