Turkish Government Nears Completion of Crypto Asset Regulation
The Turkish government is in the final stage of completing technical studies for its crypto asset regulation, which will introduce licensing and operating standards for trading platforms. Turkey’s Finance Minister, Mehmet Simsek, announced that the regulatory framework is almost complete and the technical aspects of its implementation are being assessed.
Getting Off the “Grey List”
The regulatory framework is aimed at reducing the risk of crypto trading and helping Turkey be removed from the Financial Action Task Force’s (FATF) “grey list.” This list identifies countries that have not taken satisfactory action to prevent money laundering and terrorist financing. Turkey was added to this list in 2021. Minister Simsek emphasized that the goal of the regulation is to increase trust in the crypto asset market and eliminate potential risks.
Crypto Firms Required to Obtain Licenses
Under the new regulations, crypto platforms in Turkey will need to obtain licenses from the country’s Capital Market Board (CMB). The framework also defines key terms such as “crypto assets,” “crypto wallets,” “crypto asset service providers,” “crypto asset custody service,” and “crypto asset buying and selling platforms.” In addition to obtaining licenses, the platforms will be subject to minimum operating standards, including conditions for founders and managers, organizational obligations, and capital requirements.
Turkey’s Position in the Crypto Market
Turkey ranks fourth globally in terms of raw crypto transaction volumes, with an estimated $170 billion recorded in the past year. This high level of crypto activity can be attributed to Turkish citizens turning to digital currencies due to years of double-digit inflation rates. In December, Turkey’s inflation rate was around 65%.
Hot Take: Turkey’s Crypto Asset Regulation Nears Completion
Turkey is on the verge of finalizing its regulatory framework for crypto assets, which aims to establish licensing and operating standards for trading platforms. The goal is to reduce risk, increase trust, and help Turkey be removed from the FATF’s “grey list.” Crypto firms will need to obtain licenses from the CMB, comply with minimum operating standards, and meet various conditions. Turkey’s position in the global crypto market is notable, with the country ranking fourth in raw transaction volumes. This regulatory development is expected to bring more stability and security to the crypto industry in Turkey.
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