Turkey’s main opposition party announced today that it has appealed to the Constitutional Court regarding cryptocurrencies. The Republican People’s Party, which has been working on this issue for a long time, is seeking the annulment and repeal of the regulation that came into effect on June 26.
Crypto Regulation in Constitutional Court
CHP Group Deputy Chairman Gökhan Günaydın stated that some articles of the law on crypto assets should be annulled. Party officials who applied to the Constitutional Court took action against the law numbered 7518, dated June 26, 2024, which amends the Capital Markets Law.
Gökhan Günaydın said the following on the subject;
“As the CHP Group, we have applied to the Constitutional Court to suspend and annul the provisions of the regulation on crypto assets that are contrary to the public interest.”
They explain the rationale for their request as follows;
“The structure and activities of crypto asset service providers, the transfer of shares when the partners of crypto asset service providers lose the necessary qualifications, the procedures and principles of the contract to be made between the crypto asset service provider and the customer being determined by the Capital Markets Board without legal criteria and in a way that disrupts the competitive market structure, the Capital Markets Board being able to make decisions to remove content and/or block access in a way that limits freedom of expression, and the members of the crypto asset service provider, who are assigned various rights, powers, duties, and responsibilities, not being clearly defined at the legal level.”
In summary, the objection here is mostly related to the deficiencies of the law.
Crypto Currency Regulation
The latest regulation does not include significant details concerning crypto currency investors. The main focus of investors, taxation, was removed from the latest work and postponed until after the holiday. There are millions of crypto currency investors in Turkey, and these investors represent a significant portion of the global market in terms of volume.
Investors, who demand reasonable rates similar to those in traditional exchanges, want the high volatility in crypto to be considered. For investors who can quickly gain or lose, the most reasonable scenario is to levy taxes similar to commissions only on buying and selling transactions. Otherwise, accounting for gains and losses will also bring a burdensome process for tax authorities.
For now, since the issue of taxation specific to crypto currencies has not been legally clarified, and due to the fact that tax laws are not retroactively enforced, waiting is no longer a problem for investors.
