The authorities, although warned about the risks due to the volatility of bitcoin, did not forbid it and other non-fiat currencies. Under the Central Bank of the country, a research commission was even created – a financial group charged with introducing cryptocurrencies in the state. Crypto exchanges and services operated in the country, but there was no detailed legislative regulation of the sphere, and the authorities called bitcoin inconsistent with the standards of electronic money.
In 2021, after several exchanges collapses, local regulators hardened requirements for providers to work with crypto assets by adopting new regulations. Cryptocurrencies have been recognized as assets in Turkey but have been forbidden from being used as a means of payment. Formally, the operators were obliged to adhere to international standards in the field of combating illegal money laundering and the financing of terrorism, but in fact, the cryptocurrency was banned.
Is it possible to get a cryptocurrency exchange license in Turkey?
In fact, registering a cryptocurrency exchange license in Turkey is not possible due to the approach of local authorities to assess the activities of operators in the field of cryptocurrency. If you are planning to start a business in this area to reach the European, global level, you will need:
- choose a jurisdiction that is loyal to cryptocurrencies in the region of the alleged activities; for example, in Europe, this is the Czech Republic;
- open a local company with a “physical” office, full-time staff;
- form the authorized capital;
- develop procedures, internal rules, and regulations for internal control, KYC/AML, customer risks;
- prepare a documentation package with descriptions of technical means, software, protocols for protecting private customer information;
- open an account with an acquiring bank, etc.
In the process of activity, it will also be necessary to implement several typical actions:
- monitor the customer’s profile, as well as the operations that a customer performs;
- identify transactions that require more careful examination – those that involve large amounts of assets and are carried out without an obvious economic and legal purpose;
- refuse to conduct transactions and terminate relationships with customers who are at risk of money laundering and terrorist financing;
- report cases of suspicious transactions;
- report on their activities.
The list of specific duties that an operating company in the field of cryptocurrencies must perform depends on the chosen jurisdiction. If you plan to start a crypto business in the European region, “Prifinans” lawyers can offer you more than one alternative to registering a company in Turkey.
“Prifinance” – assistance in registration and licensing of cryptocurrency business
“Prifinance” сonsulting company provides legal, consulting, and organizational support for creating a digital business, registering it in the chosen jurisdiction, and obtaining cryptocurrency licenses. Our services:
- tax planning, development of corporate structure models, a pattern of work in the field of blockchain, exchange of non-fiat money;
- preparation of a package for business registration – from consultations on the choice of organizational form to opening bank accounts and depositing authorized capital into them;
- collection of documentation for the cryptocurrency exchange license – data on the founders, company, directorate, policies and regulations, etc.;
- assistance in licensing and deployment of work, preparation of regular reports, payment of taxes, etc.
“Prifinance” will help you quickly, legally and without bureaucratic troubles start exchange activities and become a full participant in the cryptocurrency market. We will be happy to develop specific solutions for your business tasks.