The long-awaited bill containing regulations regarding cryptocurrencies was accepted by the Turkish Grand National Assembly on June 27, 2024 and became law. This development heralds the beginning of a brand new era for the cryptocurrency ecosystem in Turkey and offers significant gains for investors and all relevant parties.
What’s in the cryptocurrency law?
The law on crypto assets, adopted by the Turkish Grand National Assembly on June 27, 2024, opens a brand new page regarding the developments in this field in Turkey. With the law, it is expected that significant gains will be achieved for all stakeholders of the crypto asset ecosystem and the sector will grow further.
The new law defines the basic concepts related to crypto assets and requires platforms and service providers operating in this field to obtain a license from the CMB. In this way, it is aimed to establish an environment of transparency and trust in the sector. With the law, CMB is also authorized on issues such as the procedures and principles to be applied in the activities of crypto asset service providers, transactions to be carried out on platforms, investment consultancy and portfolio management. In this way, the supervision and regulation of the sector is gathered under one roof.
Another important issue in the law is that there is no regulation regarding the taxation of crypto assets. This issue will be addressed with a separate law or regulation in the future. The law prohibits crypto asset service provider activity without permission and provides for a prison sentence of three to five years for this crime. Additionally, sanctions will be imposed if crypto asset service providers commit embezzlement.
What will existing platforms do?
Following the legislation, currently operating crypto asset service providers must apply to the CMB within one month. Platforms that do not apply are requested to terminate their activities and take a decision to liquidate within three months. Cryptocurrency ATMs are also banned under the law. In this way, it is aimed to protect investors from risks such as fraud and money laundering. The adoption of the law on crypto assets enables Turkey to take an important step in this field.
With the law, transparency and trust in the sector will be ensured, investors will be protected and a suitable basis will be prepared for the development of the crypto asset ecosystem. Thanks to the CMB’s supervision and licensing requirements, investors will be able to have more confidence in cryptocurrency platforms and service providers. In this way, risks such as fraud and forgery will be minimized. With the law, investors will have greater legal protection in cases where their crypto assets are lost or stolen.Crypto asset service providers offering a variety of investment tools and services will provide investors with more options and increase interest in crypto assets.
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