Turkish legislators have approved a crypto bill introduced by ruling party chairman Abdullah Güler, which imposes fines of up to $182,600 and imprisonment of up to five years for violations, as reported by crypto.news Türkiye.
The bill has now been sent to President Recep Tayyip Erdoğan for approval. If approved, the decision will be published in the Official Gazette by the end of the week, bringing the bill into effect.
Under the new law, crypto exchanges wishing to operate legally in Turkey must be licensed by the Capital Markets Board, the country’s financial regulatory and supervisory agency. Unauthorized crypto platforms offering trading services could face prison sentences of three to five years.
Crypto providers will also be responsible for implementing and reporting measures such as seizures and other legal enforcement actions. Additionally, 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 transaction tax of 0.04% may be levied on investors’ crypto trades, though the details of its regulation remain unclear.
Turkey has been considering crypto regulation since 2021, after the Financial Action Task Force (FATF) included the country on its “grey list” for failing to adequately supervise sectors vulnerable to money laundering, such as banking and real estate.
In November 2023, Turkey’s Treasury and Finance Minister Mehmet Şimşek announced the introduction of crypto legislation. Addressing the nation’s planning and budget commission, he noted that Turkey has met 39 of the 40 FATF standards and was in the “final stage” of compliance.
In early 2024, Şimşek emphasized that the upcoming regulations aim to mitigate the risks associated with crypto trading and protect retail investors. Key aspects of these regulations reportedly include legal definitions for terms such as “crypto assets,” “crypto wallets,” and “crypto asset service providers.”
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