Legislative work on crypto-assets acceleratesŌ

has accelerated its efforts to establish the legal infrastructure THE AK PARTY for crypto-assets, which entered our lives in 2010 and have developed rapidly around the world. The ruling party met with crypto representatives and academics who are experts in the subject and collected their opinions. While there is a common opinion that the legal regulation should be made expediently, the plan is to make a framework law at first and regulate the details with secondary legislation. The Ministry of Treasury and Finance, Ministry of Industry and Technology, Banking Regulation and Supervision Agency (BDDK), Central Bank, and Financial Crimes Investigation Board (MASAK) are also participating in the study.

The work carried out under the coordination of AK Party Group Deputy Chairman Mustafa Elitas is expected to be completed in this legislative term. Elitas stated following the meetings that the basic law will be made immediately and the details will hashed out by bylaws. They are planning to prepare a text that can keep up with the changes in the industry, which occur very rapidly, he added.

There is also consensus on the taxation of crypto assets. Elitas stated that crypto representatives do not have any objections to taxation.

EXAMINING GLOBAL EXAMPLES

The AK Party is also examining the examples of England, Japan, and the U.S., which have completed the legal regulation phase for crypto. The regCANAN SAKARYA ulations they are working on aim to make local exchanges transparent, secure, and auditable on the one hand, and to prepare a suitable financial basis on the other. A source from the AK Party stated that the allegations of high tax rates do not reflect the truth. Noting that they will to provide security to the investor who trades crypto as the priority, Elitas said that no regulation should be perceived as a prohibition to the investor. He also drew attention to the fact that Turkey ranks 5th in the world in terms of transaction volume.

DRAFT HAS BEEN PREPARED

A draft law has been prepared by the Ministry of Treasury and Finance. Natural and legal persons who are found to be operating as a crypto asset service provider without obtaining permission will be sentenced to imprisonment of three to five years, according to the draft. Penalties no less than TRY 20,000 may be imposed on those who make crypto-asset purchases, sales, and transfers in unauthorized institutions. The Capital Markets Board (SPK) will undertake the task of monitoring crypto assets. Cryptocurrency platforms and service providers will be authorized by the SPK. The buying and selling transactions of people residing in Turkey in terms of crypto assets will be made by institutions authorized by the SPK.