Turkey Considers Ban On Cash Transactions Above $205

According to Cointelegraph, Turkey is contemplating a ban on cash transactions exceeding 7,000 Turkish liras ($205), raising questions about the implications for cryptocurrency. The Turkish Revenue Administration initiated a public draft consultation on September 9 to amend the General Communiqué on Tax Procedure Law number 459. The proposed amendments would mandate that payments above $205 be processed through banks or financial institutions, with violators facing fines of 10% of the transaction amount, not less than 5,000 liras ($147) for end-consumers. Public feedback on the draft amendments is open until September 13. Local experts believe the new regulations will have minimal impact on cryptocurrency, as Turkey has already banned crypto payments. Meric Paldimoglu, founder of the Paldimoglu Law Firm, highlighted that cryptocurrencies cannot legally be used for payments, referencing a 2021 regulation by Turkey’s Central Bank. The regulation aims to reduce the underground economy, similar to the proposed cash payment restrictions. Ismail Hakki Polat, a local cryptocurrency mentor, concurred, stating that the ban on crypto payments means the new laws should not directly affect the crypto market. The proposed measures are part of Turkey's broader efforts to increase tax revenues and enhance economic transparency. These steps are particularly significant following the Financial Action Task Force's removal of Turkey from the money laundering “gray list” in June 2024. The country has since introduced a 0.03% tax on crypto transactions and seen an increase in crypto firms applying for licenses under new regulations. These initiatives reflect Turkey's commitment to better regulate the crypto market and improve its budget.