10 platforms / $7 billion asset! Crypto regulation in Turkish Parliament!

FCHAIN Türkiye Office informs:

Work has begun in the Parliamentary Planning and Budget Commission for the bill regarding crypto assets. According to the prepared analysis report, there is a total of $7 billion in assets on 10 crypto trading platforms in Türkiye. With the law, both the number of platforms and regulations will increase…

The current value of assets held in platforms facilitating crypto asset trading in Türkiye is estimated at $7 billion. An impact analysis has been prepared for the discussions on the draft law regarding crypto assets in the Turkish Grand National Assembly Planning and Budget Commission. The analysis emphasizes that the draft law will provide opportunities for regulating and supervising the crypto asset ecosystem in many aspects, ranging from protecting the rights and interests of investors to determining the procedures and principles regarding service providers’ activities and customer funds held at banks for crypto asset trading.

INCOME OF 100 MILLION TL

With the enactment of the proposal related to crypto assets, crypto asset service providers applying to the Capital Markets Board (SPK) to operate in this field by fulfilling the obligations imposed will be granted activity permits and authorization certificates indicating this activity permit will be issued. In this context, an authorization fee will be charged. According to the impact analysis, it is envisaged that initially 10 to 20 platforms will be authorized and additionally, 5 to 10 banks will obtain custody licenses in the initial stage upon the implementation of the regulation. It is expected that a public revenue of between 11.2 million to 22.4 million lira will be obtained from the activity fee in the initial stage. According to the bill proposal, by the end of every May, 1% of all revenues of platforms excluding interest income from the previous year will be paid to the SPK and 1% to TÜBİTAK. According to the data obtained from the 10 crypto asset trading platforms subject to the impact analysis, the total revenues of the platforms excluding interest income for the year 2023 amounted to approximately 5 billion lira. Based on these calculations, an income effect of approximately 100 million lira is expected from the regulation.

A TOTAL OF 20 MILLION INVESTORS

The impact analysis indicated a high interest in the crypto asset ecosystem in Türkiye. According to the information requested from 10 crypto asset service providers, there are approximately 20 million investors on these platforms. The analysis included the following information: “Taking into account that there are investors who have accounts on multiple platforms within this figure, it can be evaluated that there are over 10 million accounts with balances in total. This figure was forecasted to be 1.7 million in 2020. Looking at the number of investors with investment accounts registered with the Central Securities Depository Institution (MKK) to invest in the capital markets, there are approximately 12 million individuals.