Turkey Prepares Crypto Regulation, Aims for FATF Compliance
Turkey’s Minister of Treasury and Finance, Mehmet Simsek, has revealed that Turkey is in the final stages of preparing a legal regulation for crypto assets. In an interview, Simsek discussed the need to address the risks and opportunities associated with crypto asset buying and selling platforms. He emphasized the importance of aligning Turkey’s regulatory steps with international practices and staying informed about global developments.
Key Points of the Crypto Regulation
The draft regulations in Turkey include comprehensive definitions for various aspects of crypto assets. Simsek provided an example of how crypto assets are defined as “intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology.” The proposed regulations aim to license crypto asset trading platforms through the Capital Market Board of Turkey (CMB) and impose minimum operating conditions similar to those of financial institutions.
CMB’s Role in Regulating Crypto Asset Trading Platforms
The Capital Market Board of Turkey (CMB) will play a crucial role in regulating crypto asset trading platforms. These platforms will require licenses from the CMB and be subject to operational requirements comparable to those for financial institutions. The CMB will also have the authority to regulate the issuance of capital market instruments as crypto assets.
Taxation and Investor Protection
While the current regulation does not address taxes, separate studies will be conducted on this matter. The CMB aims to establish written procedures for determining traded assets on platforms without interfering with listed crypto assets. Additionally, custody principles for investors will be regulated, and measures and sanctions will be established to protect investors’ assets against abuse.
2024 Presidential Program and Central Bank Digital Currency
The Turkish Presidential Annual Program for 2024 outlines the goal of completing cryptocurrency regulations by the end of that year. It also mentions providing legal definitions for crypto asset providers, including cryptocurrency exchanges. In December 2022, the Central Bank of the Republic of Turkey successfully conducted an initial trial of its central bank digital currency, the digital lira.
Hot Take: Turkey Takes Steps Towards Crypto Regulation and Compliance
Turkey’s progress towards establishing a legal framework for crypto assets demonstrates its commitment to addressing risks and opportunities in the industry. By aligning with international practices and complying with FATF standards, Turkey aims to create a secure and regulated environment for crypto asset trading platforms. The proposed regulations, along with the involvement of the CMB, reflect Turkey’s efforts to protect investors and ensure transparency in the crypto market. With the completion of these regulations, Turkey is poised to become a more attractive destination for crypto businesses and investors.
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