Turkey’s Bold Move: Cryptocurrency Regulation on the Horizon in 2024

The 2024 Turkish Presidential Annual Programme aims to complete the nation’s cryptocurrency laws by the end of 2024. It was released on October 25 in the Republic of Turkey’s Official Gazette. 

What Does Article 400.5 Say?

The almost 500-page document’s Article 400.5 details the research that will be conducted to identify cryptocurrency holdings that may be subject to appropriate taxation after that. Providers of cryptocurrency assets, such as exchanges, will also have a legal definition. 

There are no further specifics about the upcoming restrictions in the text, though. The document’s release signifies Turkey’s commitment to regulate and monitor the growing cryptocurrency market within its borders. Including a legal definition for cryptocurrency assets and the focus on taxation suggests that the government aims to establish a framework that ensures transparency and accountability in this emerging sector. 

The new document signifies the government’s commitment to regulating the cryptocurrency market and ensuring transparency in financial transactions. This move is expected to provide clarity and stability to the cryptocurrency industry in Turkey, attract more investors, and foster innovation in the sector. 

A Turkish court sentenced Faruk Fatih Özer, the former CEO of the cryptocurrency exchange Thodex, to 11,196 years in jail in September 2023. One of the biggest trading platforms in the nation, Thodex, dramatically collapsed in 2021.

Past Survey Conclusion

A 2022 survey found that Turkey ranked second globally, with 5.5% of people inquiring about cryptocurrencies. Amidst the current inflation problem of the local fiat currency, the Turkish lira, the country witnessed an elevenfold increase in the use of cryptocurrencies in 2021. This surge in interest and usage of cryptocurrencies in Turkey can be attributed to the growing distrust in traditional financial institutions and the desire for alternative investment options. 

Additionally, the ease of access and convenience provided by cryptocurrency exchanges like Thodex significantly attracted more individuals to enter the market. The Central Bank of the Republic of Turkey concluded the first trial of the digital lira, the Central Bank’s digital currency, in December 2022 and has indicated that testing would continue through 2024. President of Turkey Recep Tayyip Erdoğan has consistently backed the digital lira initiative, even though the government has yet to commit to fully digitizing the nation’s currency.