A new legislative proposal to regulate crypto-assets in Turkey has been discussed in the Planning and Budget Committee of the Grand National Assembly of Turkey (TBMM), sparking extensive debate. This bill aims to make significant amendments to the Capital Markets Law No. 6362 and to introduce a wide range of regulations on crypto-assets, from trading to transfer. The bill, which details issues such as the operating permits of crypto asset service providers, the protection and supervision of customer assets, also raised various questions and criticisms regarding taxation.
General Purpose of the Bill
The main purpose of the bill is to regulate and supervise the rapidly growing crypto asset market in Turkey. It is estimated that approximately 10 million people in Turkey have traded crypto assets at least once. This situation has brought to the agenda the high volatility of the market and the need to protect users. The proposed law includes regulations on the trading of crypto assets through platforms and aims to determine the establishment of crypto asset service providers, their activities, asset transfers and the rules regarding these activities.
Issuance of Crypto Assets and Permission to Operate
The draft law regulates the issuance of crypto assets and requires crypto asset service providers to obtain an operating license. It emphasizes that crypto assets should be monitored by the Central Registry Agency (CRA) and authorizes the Capital Markets Board (CMB) to do so. Furthermore, the CMB's authorization is required for the establishment and operation of crypto asset service providers. Factors such as operating conditions, capital, qualifications of managers and personnel will be determined and supervised by the CMB.
Qualifications and Responsibilities of Service Providers
Partners of cryptoasset service providers must have certain qualifications, such as not being a bankrupt, insolvent, or insolvent. They must also not have been convicted of serious crimes, such as disgraceful crimes and financial crimes. Shareholders, board members and preferred shareholders who lose these qualifications are required to transfer their shares. Regulations regarding the trading, custody, transfer and initial offerings of crypto assets also fall under the jurisdiction of the CMB.
Supervision of Crypto Asset Transactions and Client Protection
The draft law requires cryptoasset transactions to be recorded and audited in accordance with the principles of transparency and accountability. Technical support will be received from TÜBİTAK to ensure the internal systems and information security of cryptoasset service providers. Client assets will be kept separate from the assets of the service provider and will not be subject to enforcement proceedings.
Taxation Discussions
The issue of taxation of crypto-assets was discussed intensively during the Commission deliberations. Some MPs questioned why crypto asset transactions are not taxed and emphasized that this situation should be regulated in the future. In particular, it was stated that large profit holders other than small investors should be taxed. The opinion of the Ministry of Treasury and Finance on taxation was questioned and it was stated that more comprehensive studies should be conducted on this issue.
Income Inequality and Tax Policy
Taxation of crypto assets is seen as important in terms of reducing income inequality and creating a fairer tax system. MPs stated that crypto asset gains should be taxed and cryptocurrency mining should be taxed. It was emphasized that tax rates should be kept at reasonable levels and warned that high tax rates may reduce tax revenues.
Effective Date and Transition Period
The draft law requires crypto asset trading platforms operating before the entry into force to apply for an operating license by meeting certain conditions. With the enactment of the proposed law, it is aimed to create a more secure and organized environment in the crypto asset market in Turkey.
Conclusion and Next Steps
The law proposal, which was accepted by the Commission, will be discussed in the General Assembly of the Turkish Grand National Assembly and with its entry into force, it is aimed to create a safer and more organized environment in the crypto asset market in Turkey. The taxation of crypto assets will be discussed more comprehensively in the coming periods. With the enactment of the bill, it is of utmost importance that comprehensive and effective regulations are put in place to ensure the healthy growth of the crypto asset market in Turkey. These regulations will ensure the protection of users and increase the reliability of the market.
