The Turkish Government aims to regulate cryptocurrency transactions. Is it advantageous for investors to monitor and control cryptocurrencies? What rules will be followed in the system to be established? All this and more here.
Blockchain Turkey Platform, “Law, Regulations and Public Relations Working Group” within the Tax, Accounting and Audit Sub-Working Group prepared by the “Tax, Accounting and Auditing of Crypto Assets” report has been published.
The report “Examination of Crypto Assets in Terms of Tax, Accounting and Audit”, which was prepared with a detailed study, contains remarkable warnings on this subject. One of the suggestions was the section listing the legal infrastructure of cryptocurrencies and the methods that allow fraud to be prevented.
In the report prepared with the presentation of Faruk Eczacıbaşı, Chairman of the Executive Board of Blockchain Turkey, under the coordination of Eczacıbaşı Holding Supervisory Board Member Tayfun İçten, the following items were included in the recommendations regarding the measures to be taken:
- It is important to determine the definition of crypto money and the legal definition of companies that will issue crypto money, mediate trading transactions and provide online wallet services, and publish the relevant law.
- Classification of cryptocurrencies under certain categories for the purpose of issuance while determining the definition of crypto money. For example, payment token (payment token, emoney token, exchange token), investment (security token) and utility (utility token) or hybrid token. However, the asset-based or algorithm-based distinction of issued coins/tokens should also be explicitly included in the scope of the regulations.
- Legal companies that will operate in the crypto asset ecosystem must be subject to the licensing process by the public authorities. Crypto-asset service providers should also be subject to the licensing process, and their license to operate should be differentiated by regulation as primary market, secondary market or tangential.
- The licensing process of service providers that act as an intermediary in buying and selling transactions (virtual asset service providers) covers areas of activity such as exchange between crypto assets and fiat money, exchange between cryptocurrencies, crypto money transfer transactions, crypto asset custody services and the management of crypto asset transactions on behalf of others. should be differentiated accordingly.
- In the development of legal regulations, the opinions of the stakeholders in the crypto asset ecosystem should also be sought by the regulators.
- The protection of customers for companies that will provide online wallet services should be ensured by legal regulations.
- Regulations regarding the taxation of income from crypto money transactions should be added in the tax legislation.
- Illegal coin issuers, intermediaries and investment companies should be dealt with.
- Crypto money insurance funds should be established to protect savers, as in deposit insurance, within the scope of customer protection against possible loss and bankruptcy situations.
Regulations on Crypto Assets
Investments in cryptoassets worry governments. They are concerned about unfair advantage, fraud and equality principles. China, the USA and the European Union are preparing for new laws. The IMF publishes risk reports. There are statements that these moves are made to protect investors. Cryptocurrency producers and markets in the world involve some risks. These risks worry investors. The accuracy of laws and decisions can make investments feel secure. Issues that worry some investors are exposure, loss of market dominance, taxation and penalties.