Turkish lawmakers have passed a cryptocurrency bill that could impose hefty fines of up to $182,600 and prison sentences of up to five years for violations.
The legislation, introduced by the ruling AK Party’s chairman Abdullah Güler in May, now awaits President Recep Tayyip Erdoğan’s approval. If signed, it will be published in the Official Gazette by week’s end and become law.
Under the new bill, crypto exchanges operating in Turkey must obtain a license from the Capital Markets Board, the country’s financial regulator. Unauthorized platforms offering trading services could face three to five years imprisonment.
The legislation also mandates crypto providers to implement and report various measures, including seizures and other legal enforcement actions, and ensure customer fund transfers are accessible and traceable by legal authorities.
This regulatory move comes as Turkey emerges as a growing hub for crypto businesses. Cryptocurrencies have become a popular financial refuge amid high inflation and other problems plaguing the country’s economy.
Recently, Misyon Bank, a leading Turkish neo bank, expanded its services to include virtual asset custody and tokenization through a partnership with Swiss digital asset custody provider Taurus. OKX has also launched OKR TR, a dedicated trading platform for the Turkish market featuring Turkish Lira support and bilingual customer service.
On the other hand, this legislative development marks a significant step in Turkey’s efforts to regulate its growing cryptocurrency sector and address international concerns about financial oversight.
The Turkish government has been exploring crypto regulations since its inclusion on the Financial Action Task Force’s (FATF) “grey list” in 2021 for insufficient oversight of the sector, which has led to it being prone to money laundering. In November 2023, Treasury and Finance Minister Mehmet Şimşek announced the introduction of crypto legislation, stating that Turkey has nearly achieved full compliance with FATF standards.
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