The government of Turkey wants to drastically change its cash payment policies and proposes a 7,000 Turkish liras (approximately $205) maximum limit for cash transactions. Draft consultation of the Turkish Revenue Administration describes new rules aiming at imposing a 10% penalty on cash transactions exceeding this amount.
According local reports, businesses and those paying cash for more than $205 will be fined should the advised procedures not be taken. Fines would be roughly $147, 10% of the value of the deal, minimum of 5,000 liras The public has till September 13 to make recommendations.
Analyzing the proposed rules, Turkey’s business and Crypto communities rank among others’. Although there are issues, analysts think Turkey’s current Crypto policy will not have a major impact on the Bitcoin market so future regulations will not have any effect.
Turkey’s Cash Payment Limit Impact On Cryptocurrency And Financial Regulations
Turkey’s Crypto policies today make using digital money including Crypto for needs following Central Bank configuration illegal.
Concerned about how quickly the raised cash payment limit would impact cryptocurrencies, Meric Paldimowicz, the Paldimowicz Law Firm’s founder,As advised by Coordelegraph, “cryptocurrency cannot legally be used as a means of payment”. There are no other similar restrictions on money gifts.
Local Crypto guru Ismail Hakki Polat concurred, noting “it shouldn’t directly affect as the Turkish Central Bank banned the usage of crypto in payments.”
Turkey’s broader overall movement toward better tax collecting and transparency comes with a cap on cash payments. Once taken off the “grey list,” Turkey has been focusing on strengthening her financial plan since June 2024. Originally set for June, the new law taxing Crypto transactions 0.03% aims to help to boost national income collecting and regulatory administration.
The Turkish Capital Markets Board for August 2024 thinks that businesses engaged in Crypto business need more licenses. This exposed sector reaction on legislation changes carried out in Turkey.
Crypto is developing its policies presently, hence right now the main focus is on simplifying taxes and increasing the economic openness. The Crypto business won’t suffer most likely.
