As per Turkey’s Webtekno news portal, the country is focusing on creating a legal framework for the cryptocurrency sector and related exchanges, indicating the potential for taxation and other regulatory measures.
The announcement on October 2023, stated that the “2024 Annual Program of the Turkish President” aims to finalize a legal framework and regulations for the national cryptocurrency in 2024.
A document spanning nearly 500 pages, with section 400.5 titled “Activities and Projects to be Implemented” under “Policies and Measures,” discusses necessary adjustments in regulations related to cryptocurrency transactions. The content from the document also reveals that the Turkish government is taking action and planning to establish a legal framework, including:
- Planning studies to define cryptocurrency assets.
- Inclusion of cryptocurrency asset providers, such as cryptocurrency exchanges, in the legal definition.
- If the legal framework is completed by 2024, there is a high likelihood that tax collection will be implemented shortly thereafter.
However, the document does not provide detailed information on these future regulations.
In the past, the lack of regulations left the cryptocurrency community vulnerable to manipulation strategies and fraudulent tactics, as seen in the collapse of Turkey’s largest cryptocurrency exchange, Thodex—a major crypto scam in history. This incident left 400,000 users “abandoned” without access to their assets, with an estimated total cryptocurrency value of up to $2 billion.
The Thodex collapse caused shockwaves in Turkey, where cryptocurrencies were used as a hedge against high inflation and the depreciation of the lira. Faruk Fatih Özer, the founder of Thodex, was sentenced to 11,196 years, 10 months, and 15 days in prison in September 2023.
The Thodex saga unfolded during a bleak period for cryptocurrency users in Turkey, as the country’s central bank issued a ban on cryptocurrency payments effective April 30, 2021.
However, authorities have since lifted the cryptocurrency payment ban entirely, and a series of new laws introduced by Turkish regulators, including crypto regulation, prioritizing cryptocurrency research with metaverse, and experimenting with CBDC in 2022-2023, have made the country more “crypto-friendly.”