While the first crypto asset regulation in Turkey was passed by the Parliament and passed into law, the law will fill a big gap in this field. Crypto asset investors are looking for answers to the questions “Will crypto be taxed”, “How will crypto assets be listed”, “Can crypto assets be confiscated” and “How will crypto ATMs be used.
The legal gap in cryptocurrency investments, which millions of people in Turkey are interested in, was eliminated with the law passed by the Parliament. The state will now be able to conduct more comprehensive inspections in this field. Crypto investors have also started to wonder about the details of the law on many issues such as tax regulations in cryptocurrencies, trading transactions and ATMs.
Here are the questions and answers on some of the prominent topics of the regulation and some of the changes it will create in the crypto asset ecosystem:
Will cryptocurrency investors be taxed?
Taxation was one of the most curious issues regarding the regulation. The law did not include a provision on taxation of investors.
Only, 1 percent of all revenues of the platforms that will provide services in Turkey, excluding interest income from the previous year, will be paid to the Capital Markets Board (CMB) and 1 percent to the TÜBİTAK budget by the platforms until the end of May of the relevant year and recorded as income.
Which institutions will be authorized for cryptocurrency trading?
The CMB will be authorized to issue capital market instruments as crypto assets. While the authority to regulate the ecosystem will be given to the CMB, the criteria to be determined by TÜBİTAK will be applied for information systems and technological infrastructures.
Will permission be required to offer transactions to users?
One of the main focal points of the initial regulations was the licensing processes of platforms offering services in the country. Accordingly, platforms will be required to obtain permission from the CMB to be established and start operating.
Those currently operating as service providers will apply for an operating license within 1 month from the effective date. If these platforms do not want to obtain a license, they will have to submit a declaration that they will make a liquidation decision within 3 months without harming customer rights and interests.
What will happen if cryptocurrency platforms operate without a license?
Real persons and officials of legal entities found to be operating as crypto asset service providers without a license will be sentenced to imprisonment from 3 years to 5 years and a judicial fine from 5 thousand days to 10 thousand days.
Will foreign-based platforms be shut down if they do not obtain a license?
The law will not apply to platforms based abroad that do not provide services in the country and do not have a license.
However, opening a workplace in Turkey without a license, creating a Turkish website, engaging in any of the promotional and marketing activities directly or through persons or institutions resident in Turkey regarding the crypto asset services offered by these platforms will be considered as unauthorized crypto service provision.
Will crypto assets be seized?
Customers’ cash and crypto assets cannot be seized due to the debts of crypto asset service providers. The assets of crypto asset service providers will not be seized due to the debts of their customers, even for public receivables.
How will the listing of crypto assets take place?
The principles and guidelines for the listing of crypto assets will be determined by the CMB. In the principles and principles to be determined, technical criteria regarding the technological characteristics of crypto assets may be included by taking the opinion of TÜBİTAK or other institutions and organizations deemed necessary. The fact that a crypto asset is listed by a platform does not mean that it is publicly approved.
Who will supervise cryptocurrency platforms?
The financial audit and independent audit of information systems of crypto asset service providers will be carried out by independent audit institutions included in the list announced by the CMB.
Will the managers of the platforms be penalized?
If the chairman and members of the board of directors of crypto asset service providers and other members commit embezzlement, they will be sentenced to imprisonment from 8 to 14 years and a judicial fine of up to 5 thousand days.
Will crypto ATMs be available?
Electronic transaction devices, known as ATMs, which allow customers to convert their crypto assets into cash or crypto assets, will terminate their activities within three months following the effective date of the law. ATMs that do not terminate their activities will be closed by the authorized administrations.
