Bloomberg Warns of Tighter Crypto Regulation in Turkey

Turkish authorities are drafting legislation designed to tighten oversight of the crypto industry and are likely to introduce a tax on some transactions. Bloomberg reports, citing government sources.

The ruling Justice and Development Party (AKP) of President Recep Tayyip Erdoğan is expected to submit new rules for local crypto exchanges to Parliament for consideration in the coming weeks.

Among the proposals is a requirement that companies hold a minimum capital of 100 million lira (~$6 million). Global crypto trading platforms would be required to establish branches that would pay taxes in Turkey.

On individual taxation, authorities have not reached a final decision. According to sources, the government is inclined to introduce a “symbolic fee” on the purchase of digital assets.

The new regulatory measures were discussed at a meeting in the president’s office attended by his deputy Fuat Oktay, the finance and treasury minister Nureddin Nebati and the head of the Ministry of Trade, Mehmet Musa, officials said.

Against the backdrop of the lira’s devaluation, there is growth in the popularity of cryptocurrencies.

In 2021, the country faced the bankruptcies of two digital-asset exchanges — Thodex and Vebitcoin. After that, authorities required platforms to implement mandatory user verification and to disclose information on transactions over $1200.

In July, the Ministry of Finance and the Treasury announced the completion of the industry-regulation bill and its submission to Parliament. The ministry noted that the document does not call for a ban, but emphasises a ‘tougher supervisory framework’.

In September, President Erdogan stated that authorities are waging a separate fight against cryptocurrencies.