Crypto News – 5 Essential Points to Know Before the Turkish Crypto Bill Passes into Law

Crypto News – What Must Be Known Before the Turkish Crypto Bill is Approved?

Crypto News – It is anticipated that the government of Turkey, one of the world’s largest cryptocurrency economies, will draft legislation pertaining to cryptocurrencies at some point this year. In January, Mehmet Simsek, the Minister of Treasury and Finance in Turkey, declared that the local cryptocurrency laws were nearly finished. Although the draft legislation has not yet been released, many anticipated that the Turkish government would begin regulating the cryptocurrency sector in early 2024.

Turkey has been silent on cryptocurrency regulation, raising questions about when legislation will be passed and the state of affairs at the moment. To shed light on these matters, Cointelegraph spoke with some local industry enthusiasts.

1. Turkey Has Little Crypto Regulation

Even though the Turkish government hasn’t yet introduced crypto legislation, the industry is nonetheless governed by the nation’s regulations. Ismail Hakki Polat, a local crypto mentor, claims that while there are currently “very slight regulations” regulating cryptocurrencies in Turkey, they are not created by the parliament.

Since it’s not a regulation passed by the parliament, nobody knows what are the consequences, penalties and fines of violating these rules. Let’s say, this regulation is with no legs on the ground,

Polat

2. Turkey is the World’s fourth-largest Largest Crypto Trading Market by Crypto Adoption

Turkey has one of the highest rates of crypto adoption worldwide and is a significant player in the global cryptocurrency economy. Turkey is the fourth-largest cryptocurrency market in the world, ahead of Russia, Canada, Vietnam, Thailand, and Germany, with an estimated trade volume of $170 billion, according to statistics from Chainanalysis.

The number of Turkish cryptocurrency investors is estimated to be 20 million, among 85 million of the total population of our country,

Polat

3. The Reason Turkey Chose 2024 for Crypto Legislation

The Financial Action Task Force’s (FATF) “gray list” related to anti-money laundering (AML) regulations is about to be lifted due to Turkey’s soon-to-be-enacted cryptocurrency laws. Turkey needs to resolve 39 action items—one of which is connected to the cryptocurrency industry—in order to be removed off the FATF’s “gray list,” according to Polat. To guarantee that virtual assets aren’t utilized for illicit purposes, the FATF mandates that nations abide by its framework.

4. What Will Be Included in Turkey’s Crypto Law?

The primary focus of Turkey’s impending cryptocurrency regulations will be on licensing and regulating cryptocurrency exchanges. The rule will specify the obligations and liabilities of exchanges, which the FATF framework refers to as virtual asset service providers, or VASPs. The legislation will also concentrate on safe custody criteria, which refer to how VASPs should store cryptocurrency assets to protect investors to the fullest extent possible.

5. Release Date of the Legislation

Despite several news sources anticipating some development early in the year, it is unclear when Turkey is anticipated to eventually reveal its crypto legislation. A few industry watchers have connected the June meeting of the U.S. Office of Foreign Assets Control to the date of Turkey’s crypto legislation launch.

My view or my guess is it will be at the end of this parliamentary season, which is, let’s say, June. But if they are not able to, then it means that it will be shifted to autumn or maybe the end of the year. So in my view the gray list issue is now a bit dropped from the agenda.

Polat

Frequently Asked Questions About Turkish Crypto Bill