History of Crypto Regulations in Turkey
Since the early years of cryptocurrencies, Turkey has had a dynamic and sometimes volatile relationship with them. While facing the challenges of integrating digital currencies into its financial system, Turkey has also sought to capitalise on their potential benefits.
Here is a brief look at the important years of Turkey’s crypto regulations and how they have evolved:
2013
By the end of 2013, with Banking Regulation and Supervision Agency (BDDK)’s announcement on payment methods and digital currencies, Turkey issued its first warning about cryptocurrencies. The announcement aimed to raise people’s awareness about the high volatility and potential losses associated with digital assets, without completely banning their use.
2019
Over the years, Turkey has been more interested in cryptocurrencies. During this time, there was a notable surge in the amount of cryptocurrency exchanges and an increasing local digital asset industry. However, this unpredictable growth has led to a surging sense of ‘taking control’ for the country.
As a result, the Turkish government’s Financial Crimes Investigation Board (MASAK) released new guidelines in 2019, imposing cryptocurrency exchanges to submit to anti-money laundering (AML) and combating the financing of terrorism regulations. Moreover, the board informed the banks in the country about cryptocurrencies transactions.
2021
The critical years for Turkey’s cryptocurrency regulations are 2021 and 2022. This is because major laws were implemented by the government to address potential risks and rising appeal of digital assets.
In April 2021, Turkey’s Central Bank banned the use of cryptocurrency in payment. The step was taken to protect the stability of the Turkish lira and defend consumers from the dangers associated with digital currencies. Though payment usage was limited, the ban did not outlaw keeping or selling cryptocurrency.
2022
In 2022, not only Turkish cryptocurrency investors, but also Turkish cryptocurrency exchanges, were targeted with numerous rules. These steps were a part of a wider effort to strengthen protection of consumers and security. The country planned to put up a draft law related to cryptocurrencies and blockchain technology, but it took a while for this plan to become a reality. However, it raised concerns among Turkish investors.
2023
The government kept changing its views on digital assets in 2023, finding a balance between the demand for regulation and the goal to encourage creativity in the industry.
The draft crypto law has been brought back to the forefront and planned to be put into place in 2024. The draft law aimed to increase reliability and reduce fraud. In this process, crypto tax was discussed by investors and the government.
2024
On June 26, the Grand National Assembly of Turkey (TBMM) approved the law’s proposal, which contains regulations for the cryptocurrency ecosystem.
With this law, crypto licensing became mandatory for crypto asset service providers. Those who do not comply with the law will be fined by the government and a more favourable investment environment will be provided to Turkish investors.
In addition, crypto asset service providers will be required to obtain permission from the Capital Markets Board (SPK) prior to their operations and comply with the standards set by the Scientific and Technical Research Council of Turkey (TUBITAK) in fields related to technical infrastructure.
