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Turkish parliament approves cryptocurrency law that includes prison sentences and fines of up to $182,000
The Turkish parliament has passed a cryptocurrency law regulating its use, with fines ranging from $7,500 to $182,600 and prison sentences of three to five years for violations.
Turkish Lawmakers have approved the cryptocurrency law introduced by ruling party chairman Abdullah Güler, which provides for fines of up to $182,600 and imprisonment of up to five years for violations. reported from crypto.news Türkiye.
The bill has now been sent to Turkish President Recep Tayyip Erdoğan for approval. If approved, the decision will be published in the Official Journal by the end of the week, thus giving effect to the bill.
According to the new bill, cryptocurrency exchanges wishing to operate legally in the country must be authorized by the Capital Markets Board, Turkey’s financial regulatory and supervisory agency. Unauthorized crypto platforms offering trading services face prison sentences of three to five years.
Cryptocurrency providers will also be responsible for implementing and reporting measures such as seizures and other law enforcement actions. Furthermore, crypto platforms must ensure that customer fund transfers, including deposits and withdrawals, are accessible and traceable by legal authorities.
Although not included in the bill, a 0.04% transaction tax could be imposed on investors’ cryptocurrency transactions, although it is unclear when and how it will be regulated.
Turkey Considers Cryptocurrency Regulation from 2021, After Financial Action Task Force (FATF) included the country on its “grey list” for failing to supervise its banking, real estate and other sectors vulnerable to money laundering practices.
In November 2023, Turkish Treasury and Finance Minister Mehmet Şimşek She said that the country was finally introducing cryptocurrency legislation. Speaking at the National Planning and Budget Committee, he noticed that Turkey met 39 of the 40 FATF standards and was in the “final stage” of compliance.
At the beginning of 2024, Şimşek underlined that upcoming regulations aim to mitigate the risks associated with cryptocurrency trading and protect retail investors. Key aspects of these regulations purportedly include legal definitions of crucial cryptocurrency-related terms such as “cryptocurrencies,” “crypto wallets,” and “cryptocurrency service providers.”