Turkey Advances Crypto Legal Framework with Emphasis on Regulatory Exchange Licensing
In Brief
Turkish Finance Minister announced that cryptocurrency regulation framework is nearing completion, and proposed licensing crypto exchanges.
Turkish Treasury and Finance Minister Mehmet Şimşek announced that the technical groundwork for the legal cryptocurrencies regulation is nearing completion. The new regulations proposes Capital Markets Board (SPK) to licence cryptocurrency trading platforms to simplify overseeing their activities.
The proposed cryptocurrency legislation, expected to be presented to the Parliament, seeks to improve the security of the cryptocurrency sector and reduce potential risks, while promoting the advancement of Blockchain technology and supporting the growth of the cryptocurrency ecosystem. The new legislation aims to bring Turkey’s regulatory approach in line with international standards for overseeing the cryptocurrency sector.
Mehmet Şimşek highlighted that while the Central Bank and Turkish Financial Crimes Investigation Board (MASAK) have implemented certain regulations for the cryptocurrency sector, further measures are deemed necessary.
According to the minister, the primary objective of the cryptocurrency regulation is to oversee cryptocurrency trading platforms and transactions, with the SPK being designated to grant licenses to such platforms.
Minimum operational requirements, including conditions pertaining to founders and managers, organizational obligations, capital requirements and information technology infrastructure will be enforced, mirroring regulations for financial institutions.
The specifics of the operational conditions will be outlined in secondary regulations. As for now, there is no mention of taxation in the regulation, signifying that the matter is expected to be addressed separately on a later stage.
Turkey Takes Proactive Measures in Cryptocurrency Regulation
Turkey is actively working to be removed from the grey list related to money laundering, aiming to comply with the Financial Action Task Force (FATF) requirements. The regulation introduces measures and obligations to prevent misuse.
According to the Chainalysis report, from July 2022 to June 2023 — Turkey ranked fourth globally in raw crypto transaction volumes, recording around $170 billion in activity, trailing behind the United States, India and the United Kingdom.
Turkey’s proactive approach to cryptocurrency regulation, with promoting new legislation signifies country’s commitment to aligning with international standards and fostering a secure and thriving cryptocurrency ecosystem.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
