Digital currency exchanges in Turkey are now required to report transactions of over 10,000 lira (approximately $1,200) to the government, as part of a state crackdown on financial crimes and tax avoidance.
The measures were announced by the Minister of Treasury and Finance Lütfi Elvan, putting the Financial Crimes Investigation Board, or MASAK, at the heart of enforcement of the rules.
The move comes following a high profile digital currency exchange fraud in Turkey which ran to $150 million in losses. The country’s central bank has already outlawed the use of digital currency for payments, with the new powers expected to give MASAK more authority in regulating the activities of the country’s digital currency exchanges.
According to the minister, MASAK is now drawing up new guidelines for digital currency exchanges, including penalties for compliance failures.
“MASAK has full audit authority over crypto exchange. Crypto trading platforms are now obliged to share the information of their active users with MASAK. They are liable for any suspicious activities on their platforms. They are also responsible for notifying MASAK about any transactions worth over 10,000 Turkish liras in 10 days after the trading.”
A legal draft of the new measures was prepared with support from the Banking Regulation and Supervision Agency, working alongside the Capital Markets Board and Revenue Administration.
Elvan also confirmed that views were taken from representatives of the digital currency sector in Turkey, as well as from local experts and academics. The rules will soon be presented to the country’s President Recep Tayyip Erdoğan for approval before becoming law.
The new enforcement action follows the arrest of 62 individuals in April in connection with a huge fraud at digital exchange Thodex, which has prompted more swift action from the authorities to tackle fraud on digital currency exchanges.
See also: CoinGeek Live panel, Digital Currency & Global Compliance: Tools & Tips for Exchanges, Wallets & Other Service Providers
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