The legal draft places a minimum capital requirement for crypto businesses operating in Turkey.
The Turkish Ministry of Treasury and Finance announced that a draft bill to establish a legal framework for crypto assets in the country is ready.
Deputy Minister Şakir Ercan Gül announced that the crypto bill would be proposed to The Grand National Assembly of Turkey (TBMM), the unicameral Turkish legislature, at the start of the next legislative year in October 2021.
Noting that Turkey is using a free-floating exchange regime — i.e. the value of the lira is set by the forex market — Gül said the country needs similar but stricter regulation for crypto assets than Western Europe or the United States.
He stated that the finished draft aims to protect retail investors, prevent money laundering and reinforce supervision for crypto exchanges.
The upcoming bill defines different types of crypto asset, Cointelegraph Turkey reported, and also designates the issuance and distribution of crypto assets, trading policies, and the conditions of crypto custodial services.
The Turkish Capital Markets Board (SPK) will oversee crypto asset companies while the Banking Regulation and Supervision Agency (BDDK) will audit crypto industry players. BDDK will establish mechanisms to protect the consumer and market integrity.
The legal draft also places minimum capital requirements on crypto businesses, which will then have an adaptation period to prepare. The new legal framework would put several protective measures, such as security clearance and collateralizing, in place.
The Turkish Ministry of Treasury and Finance took a defensive stance against crypto assets earlier this year. The ministry then announced that it is working with the country’s financial regulators, central bank, BDDK and SPK, to prepare a legal framework for crypto in Turkey.
Related: Turkish government to track crypto transactions over $1,200
As part of the regulatory preparations, the Turkish central bank banned the use of cryptocurrencies as a form of payment within the country. It also banned payment companies from providing deposit or withdrawal services for crypto exchanges. Turkish users can now only deposit Turkish lira on crypto exchanges using wire transfers from their bank accounts.
Several local experts agreed that a friendly approach in regulation, especially in taxation, would make the country an attractive market for global crypto investors.