Turkey is drafting a bill to increase control over the cryptocurrency market

Turkey is working on a bill that would introduce greater control over the cryptocurrency market and possibly impose a tax on certain transactions involving digital assets, according to two officials, according to Bloomberg.

Turkish President Recep Tayyip Erdogan’s ruling AK Party is expected to submit bills to parliament in the coming weeks setting new rules for local cryptocurrency exchange platforms, Turkish officials familiar with the matter said.

Among the proposals is a requirement for companies to have a capital of at least εκα 100m ($ 6m), the sources said, speaking on condition of anonymity. Another rule will force global cryptocurrency platforms to open branches that can be taxed in Turkey, according to officials.

While the government has not yet decided on how to tax individuals, it is tending to impose a symbolic levy on the purchase of cryptocurrencies, officials said. Turkish authorities are also considering ways to securely store cryptocurrencies, possibly within the banking industry, to prevent misconduct, officials said.

The passage of the bill will bring stricter supervision to a country shaken by the collapse of several cryptocurrency exchanges last year. The new measures were on the agenda of a meeting held in Erdogan’s office, attended by Vice President Fuat Oktay, along with Finance Minister Nurettin Nebati and Trade Minister Mehmet Mous, officials said.

Cryptocurrencies have become more attractive to Turks as the pound falls and inflation weakens the value of their savings. But cryptocurrencies also face tighter controls because of concerns about the risks they could pose to the wider financial system.

Bitcoin and Ether cryptocurrencies have fallen sharply from last year’s highs, with regulators around the world stepping up calls for tighter surveillance since the stablecoin TerraUSD fell from its dollar.