Turkey aims to establish cryptographic regulations within the calendar year 2024, as outlined in the 2024 Turkish Presidential Annual Program. The document mentions plans to define crypto assets, which could potentially lead to appropriate taxation, and provide a legal definition for crypto asset providers, including crypto exchanges.
The 2024 Turkish Presidential Annual Program, published on October 25 in the Official Gazette of the Republic of Turkey, outlines plans to finalize crypto regulations in the country by the end of 2024. This program, spanning almost 500 pages, contains details about various planned actions and initiatives for the coming year. Article 400.5 of the document highlights the objectives of defining crypto assets and providing legal definitions for crypto asset providers, particularly crypto exchanges. These definitions may pave the way for future tax regulations for the crypto industry.
While the document mentions the intent to define crypto assets and providers, it does not provide specific details regarding the nature of the forthcoming regulations. Turkey has been actively exploring the regulation of the crypto industry, and this program reflects the government's commitment to establishing a legal framework for this rapidly evolving sector.
It is important to note that Turkey has experienced significant crypto-related developments in recent years. In September 2023, Faruk Fatih Özer, the former CEO of the Turkish crypto exchange Thodex, was sentenced to 11,196 years in prison by a Turkish court. Thodex, one of the largest crypto trading platforms in the country, abruptly collapsed in 2021.
Additionally, Turkey saw an elevenfold increase in crypto adoption in 2021, partly driven by the ongoing inflation crisis affecting the country's fiat currency, the Turkish lira. As a response to these developments, the Central Bank of the Republic of Turkey initiated trials for its central bank digital currency, the digital lira, in December 2022. The government, with support from Turkish President Recep Tayyip Erdoğan, continues to explore the digitalization of the country's currency, while regulatory frameworks for the broader crypto industry are being considered.
(DAVID ATTLEE, COINTELEGRAPH, 2023)