A Deep Dive Into Crypto Laws and Regulations in Turkey
Turkey has been one of the European countries with a high crypto adoption rate in recent years. The declining value of the Turkish lira has made many citizens turn to cryptocurrencies like Bitcoin and Ethereum, making these digital assets their alternative medium of exchange and store of value.
With Turkish people now considering crypto their safe haven, the need for clear regulations to protect them has emerged. This article takes a look at the cryptocurrency legislation in Turkey. Keep Reading to learn more.
Is the Turkish Government Crypto-Friendly?
A simple answer to this question is yes! The Turkish administration is currently working on formulating a regulatory framework for cryptocurrencies in an effort to formalize the blockchain industry.
Once Turkey establishes clear rules for crypto, it will be removed from the Financial Action Task’s gray list, which contains countries that lack sufficient Anti-Money Laundering protocols.
So, is it legal to purchase cryptocurrency in Turkey? Yes! The Turkish government allows residents to buy and hold digital assets. However, as of October 2024, crypto payments are prohibited.
Do Crypto Investors Pay Taxes in Turkey?
Turkey does not impose any taxes on crypto investments as of this writing. However, it is planning to introduce a 0.05% tax on cryptocurrency transactions in the coming months. According to the Turkish government, the collected tax will help cover the budget shortfall caused by last year’s earthquakes.
Crypto-Friendly Financial Institutions in Turkey
Several Turkish financial institutions have integrated crypto assets into their systems over the past few years. For example, Garanti BBVA Bank recently introduced a Web3 wallet and a crypto trading platform, allowing customers to buy and store digital currencies within its mobile app. Furthermore, Akbank acquired the Stablex crypto company, letting clients trade the TRY/BTC pair.
Besides the two banks, other Turkish financial institutions with exposure to cryptocurrencies include İşbank, Ziraat Bank, QNB Finansbank, and Misyon Bank.
Legal Requirements for Crypto Exchanges in Turkey
Turkey has permitted numerous established exchanges to offer their services in the country. Some of those crypto platforms include OKX, Bybit, and Binance.
To offer crypto services to Turkish citizens, exchanges must first obtain licenses from the Turkish Capital Markets Board. A licensed trading platform means it has met the set legal requirements, which help protect Turkish crypto traders and investors. That said, ensuring that your preferred exchange is licensed before signing up is advisable.
How to Buy Crypto in Turkey on an Exchange
Buying your first digital asset on a licensed exchange in Turkey is simple. Here’s what you should do:
1. Create an Account: After identifying a licensed crypto trading platform, register an account by providing your email address or phone number and a strong password. Also, complete the Know Your Customer checks to remove any limitations on your account.
2. Deposit Funds and Buy Crypto: Upon completing the Know Your Customer checks, fund your account with Turkish lira using the provided payment methods. Next, head over to the spot market and look for the crypto asset you want to buy. For instance, if you wish to purchase Bitcoin, search BTC/TRY and place a buy order.
3. Store Your Crypto Safely: Keeping your crypto asset on an exchange after buying it isn’t advisable. That’s because you lack total control over it. So, we recommend transferring the digital currency to a safe, non-custodial wallet.
Are There Bitcoin ATMs in Turkey?
Yes! Bitcoin ATMs have been operational in Turkey since 2014. The Istanbul Ataturk Airport hosted the first ATM. As of October 2024, Bitcoin ATMs are found in cities like Ankara, Adana, Izmir, and Istanbul.
But what services do these ATMs offer? They allow users to deposit Turkish lira and buy cryptocurrencies. However, before depositing your money, check if the ATM is licensed on Coinatmradar.com.
Conclusion
Crypto regulations are important as they protect investors. This is why it’s essential to trade digital currencies on exchanges that fulfill legal requirements established by the Turkish regulators.
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