Work on the bill can be traced back to May 2022 when it was revealed that Turkey plans to impose taxes on "certain transactions" involving cryptocurrencies.
According to insiders, among the proposals was also a requirement to establish a capital of 100 million liras ($3.5 million as of November 2023) for cryptocurrency exchanges.
It was also claimed that international trading platforms might be obligated to open branches in Turkey for tax compliance. Despite the lack of a clear framework, it is anticipated that Turkish authorities will introduce a symbolic tax on cryptocurrency purchases.
The introduction of taxation requirements will inevitably lead to an increased demand for automated solutions. For businesses, manual calculations simply don't make sense, so there is a high likelihood of increased demand for tax providers knowledgeable in cryptocurrency matters. At BitOK, for example, we offer flexible tax calculation options for any scenario, with API integration with leading cryptocurrency exchanges.
Close associates of Turkish authorities assert that legislative changes will also affect the custodial (depository) sector. It is reported that authorities may require local crypto firms to use banking infrastructure to prevent fraud or cryptocurrency theft.
Banks are unlikely to deploy AML solutions for cryptocurrencies from scratch. Firstly, it is costly. Setting up a separate database with individual settings and markers is required for each blockchain network.
Secondly, banks risk getting into trouble if they cannot trace "black" addresses interacting with their infrastructure.
This means that the demand for compliance services in the region is likely to increase significantly, affecting the cost of AML service providers. However, it is premature to definitively speak about the regulation of the Turkish market, and it is better to wait for the publication of the bill itself.