Turkey aims at safe financial base for cryptocurrency market

Istanbul

Mustafa Ilyas, the deputy leader of the parliamentary group of the ruling Justice and Development Party (AKP), has denied allegations of a 40 percent tax on cryptocurrency gains.

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A proposed law to regulate domestic cryptocurrency exchanges is expected to be presented to the Turkish parliament in the coming weeks.

Elias tweeted late on December 6, 2021, that the new law would “aims to regulate [the local cryptocurrency] The system for preventing malicious acts, protecting investors, and confronting grievances.

Referring to several bills featured in media reports, Ilyas noted, “Every individual or institution can prepare a draft, but the grand parliament will have the last word.”

Elitaş invited 13 representatives of cryptocurrency exchanges operating in Turkey to Parliament on December 29, 2021. Senior officials from the Ministry of Treasury and Finance, the Banking Regulation and Supervision Agency (BDDK), the Financial Crimes Investigation Board (MASAK) and the Turkish Central Bank also attended the meeting.

He said after the meeting that they preferred a framework law text to allow for rapid amendments with guidelines in a rapidly changing environment.

The daily Milliyet reported Jan. 6 that senior AKP officials are scrutinizing regulations in the United Kingdom, the United States and Japan.

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Anonymous sources from the Justice and Development Party told the newspaper that the first priority for regulating cryptocurrencies in Turkey will be the transparency, security and auditability of exchange platforms to enable secure transactions.

They vehemently denied the imposition of a 40 percent tax on cryptocurrency revenues, and said that the second main goal of the regulation is to create a financial environment conducive to the healthy growth of blockchain-based businesses.

Turkey’s cryptocurrency market is among the top five in the world with nearly 5 million accounts on the cryptocurrency platform.

On December 27, 2021, MASAK fined Binance, or BN Teknoloji, 8 million Turkish liras (approximately $634,000) in the first move against the cryptocurrency platform by a watchdog.

Binance Turkey said that it communicates and cooperates “openly” with regulatory and supervisory authorities, and strives to “create a sustainable, healthy and secure ecosystem.”

The central bank’s ban on using cryptocurrencies to make payments, which was introduced in response to allegations that such transactions are risky, took effect on April 30.

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On May 4, MASAK released a directory of crypto-asset service providers. Under the guidelines, cryptocurrency exchanges have the right to verify the identities of subscribers, and report suspicious transactions and high volume trading. If these obligations are not met, cryptocurrency exchanges may be fined by MASAK, and in case of repetition, their owners may face prosecution.

These steps came after many cryptocurrency exchanges suddenly shut down, causing huge losses to thousands of investors.

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The daily trading volume on Binance, Turkey’s largest crypto platform, is around $320 million, according to CoinGecko. There are more than 30 cryptocurrency platforms in Turkey.

On December 6, the Chainalysis dataset revealed that crypto-based crime hit a record high in 2021 as total legal payments reached an all-time high. According to the group analysis.

Meanwhile, total cryptocurrency payments rose 567 percent to $15.8 trillion year-on-year, Chainalysis said, as the sector got some strong support from traditional finance.

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Cryptocurrencies are very volatile, however, the value of the sector-leading bitcoin has fallen sharply in recent days. On January 7, Bitcoin dropped to $41,008, a level not seen since the end of September 2021.

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