Turkish Parliament Tightens Cryptocurrency Reins

The Turkish Parliament (TBMM) has enacted a new law establishing a stricter regulatory framework for cryptocurrency assets. The legislation aims to combat illegal activities within the crypto space while providing a more controlled environment for investors.

A key provision of the bill targets unauthorized crypto service providers. Individuals and legal entities operating without the requisite authorization face imprisonment ranging from 3 to 5 years. This stipulation seeks to ensure companies adhere to a set of regulations designed to protect consumers and prevent financial misconduct.

Oversight of cryptocurrency transactions now falls under the purview of the Capital Markets Board (SPK). The SPK is empowered to “apply measures and sanctions” in response to violations. These measures could include blocking or confiscating funds involved in suspicious transactions. This enhanced oversight grants the SPK the authority to intervene and prevent potential financial crimes within the crypto market.

The new law also tackles fraudulent activities perpetrated using cryptocurrencies. Engaging in fraudulent schemes involving digital assets carries a hefty penalty, with prison sentences ranging from 14 to 22 years. This stern punishment underscores the government’s resolve to deter individuals from exploiting the anonymity of cryptocurrencies for criminal purposes.

Financial penalties are another prong of the newly established regulations. Breaches of the defined rules will result in fines ranging from 7, 500 USD to 182, 000 USD. The significant financial repercussions serve as a deterrent for entities and individuals who might consider disregarding the newly implemented regulations.

The enactment of this law marks a significant shift in Turkey’s approach to the cryptocurrency landscape. By introducing stricter oversight, imposing harsher penalties for illegal activities, and establishing a framework for authorized service providers, the Turkish government aims to create a more secure and regulated environment for both domestic and foreign investors in the crypto market.