Turkey’s parliament passes crypto bill with prison terms and fines up to $182k

The Turkish parliament has passed a crypto bill regulating the use of crypto, carrying fines ranging from $7,500 to $182,600 and three to five years in prison for violations.

As first reported by crypto.news Turkey, Turkish lawmakers approved the crypto bill introduced by ruling party leader Abdullah Güler, which includes fines of up to $182,600 and prison sentences of up to five years for violations.

The bill has been sent to President Recep Tayyip Erdoğan for approval. If approved, the decision will be published in the Official Gazette by the end of the week and the bill will come into force.

According to the new draft law, cryptocurrency exchanges that want to operate legally in the country must be licensed by the Capital Markets Board, Turkey’s financial regulation and supervision authority. Unauthorized crypto platforms offering trading services could face imprisonment of three to five years.

Crypto providers will also be responsible for implementing and reporting measures such as seizures and other law enforcement actions. Additionally, crypto platforms must ensure that customer fund transfers, including deposits and withdrawals, are accessible and traceable to legal authorities.

Although it is not included in the bill, investors may be charged a transaction tax of 0.04% on their crypto purchases and sales, but it is unclear when and how this will be regulated.

Turkey has been considering cryptocurrency regulation since 2021 after the Financial Action Task Force (FATF) included the country in the “grey list” for not overseeing banking, real estate and other sectors vulnerable to money laundering practices.

In November 2023, Turkish Treasury and Finance Minister Mehmet Şimşek said that the country had finally started implementing crypto legislation. Speaking to the country’s Planning and Budget Commission, he noted that Turkey meets 39 of 40 FATF standards and is in the “final stage” of compliance.

Şimşek emphasized that in early 2024, the upcoming regulations aim to reduce the risks associated with crypto trading and protect retail investors. Key aspects of these regulations allegedly include legal definitions of key crypto-related terms such as “cryptoassets,” “cryptowallets,” and “cryptoasset service providers.”