The latest crypto bill passed by the Turkish Parliament defines crypto use terms alongside the fines and jail penalties for the offenders. Introduced by ruling party chairman Abdullah Guler, State lawmakers have approved the bill and sent it to the president for final approval.
New rules require crypto exchanges to register with the country’s financial authority, the Capital Market Board (CBM). Those who fail to comply with the rules and continue to trade illegally could face prison for 3 to 5 years. Similarly, the underlined regulations impose hefty fines ranging from $75,000 to $182,600 for violating the rules.
New bill to become rules if President approves
After Parliament members approved the bill, it has now reached President Tayyip Erdogan for final approval. Understandably, if Tayyip gives the green light, the bill will be published in the official Gazette by next week. This will lead to the immediate effect of the proposed rules.
Crypto service providers will assist legal authorities in implementing legal actions, such as seizing funds. They will also report other measures the financial watchdogs suggest. In addition, crypto platforms must ensure traceable and accessible funds transfers alongside deposits and withdrawals. The new crypto rules also suggest that the exchange is fully esponsible in case its users’ funds are stuck in any legal case.
Considering Turkey’s lack of supervision in money laundering and banking systems, the Financial Action Task Force (FATF) moved Turkey to its grey list in 2021. Since then, the state has struggled with new regulatory measures to achieve the FATF’s required standard for white list.
The President’s decision over the crypto bill will affect the future of crypto exchanges within the state. The bill could become a potential turning point for Turkey’s crypto market.
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