Turkey Seeks to Align Crypto Laws with Global Standards
On May 16, Turkey’s ruling party forwarded a comprehensive new draft bill concerning cryptocurrencies to the parliament. This legislation focuses primarily on the licensing and registration processes for cryptocurrency service providers, ensuring these align with international norms and standards.
According to a Reuters report, the draft legislation aims to update Turkey’s existing laws to comprehensively regulate the burgeoning cryptocurrency market. Key areas of attention in the bill include enhancing consumer protection, mandating platform transparency, and ensuring adherence to financial regulations.
Under the proposed law, cryptocurrency trading platforms and other service providers within the sector will be required to secure licenses from Turkey’s Capital Markets Board (CMB). This initiative underscores the government’s intention to closely manage crypto asset service providers, specifically focusing on how they operate, store assets, and handle transactions involving Turkish residents.
Also pivotal to the draft bill is the classification of cryptocurrencies and related projects. This measure aims to ensure these digital assets comply with existing financial legislation. As part of this regulatory framework, crypto service providers will need to be licensed and will fall under the CMB’s jurisdiction to safeguard consumer belongings and facilitate effective dispute resolution.
The legislation calls for mandatory revenue collection from crypto service providers by both the CMB and the Scientific and Technological Research Council of Turkey. It also enforces a ban on foreign crypto brokers, aiming to nurture a regulated local ecosystem. This aligns Turkey with global standards and addresses the concerns of the Financial Action Task Force (FATF), thereby enhancing the national crypto market’s security and dependability.
The proposed law incorporates FATF’s guidelines on the so-called Travel Rule. This rule requires cryptocurrency companies and financial institutions dealing with digital asset sales—collectively known as virtual asset service providers (VASPs)—to gather and share accurate information regarding both the originator and beneficiary of transactions. Such information must be exchanged with counterpart VASPs or other financial institutions either before or during transactions.
Turkey’s motivation to tighten its cryptocurrency regulations comes in the wake of its demotion to the FATF “gray list” in October 2021. This downgrade was due to Turkey’s previous lapses in implementing adequate Anti-Money Laundering (AML) measures across various industries, including banking and real estate.
Being on the FATF’s gray list means that Turkey is subjected to increased scrutiny and is required to actively cooperate in addressing these deficiencies. The new draft bill is part of the nation’s broader effort to rectify these shortcomings and improve its standing in the global financial community.
24 thoughts on “Turkey Seeks to Align Crypto Laws with Global Standards”
Leave a Reply
You must be logged in to post a comment.
This is just a way for the government to grab more control and more money from the crypto sector . Greed is driving these regulations.
Banning foreign crypto brokers? Seriously? This is just going to limit our options and make everything more expensive!
Love seeing these proactive steps to regulate crypto! Great news for everyone in the crypto space.
Finally, clarity in the Turkish crypto space! This will make everything more secure.
Consumer protection is important, but not if it comes at the cost of freedom and innovation 😠. There must be a balance!
Enhancing consumer protection is great, but this feels like an excessive crackdown . Will it really protect us, or just make things harder?
Another example of bureaucracy trying to stifle a fast-growing industry . This will discourage new startups from entering the market.
Isn’t this just going to cripple the crypto industry here? 🚫🔒. We need more innovation, not more rules and barriers.
Fantastic to see such comprehensive legislation being put forward. Kudos!
Regulation brings legitimacy. Great job, Turkey! 🌟
Ensuring platform transparency is a top priority! Good to see Turkey leading the way.
Wonderful, another reason for entrepreneurs to leave Turkey . Over-regulation will kill creativity and growth in the crypto space.
Turkey setting an example for other countries! This draft bill is a win for all crypto enthusiasts.
This makes me feel much more secure about investing in crypto in Turkey. Thanks, government! 🛡️💰
Great to see compliance with FATF’s guidelines! This is a huge step forward for the crypto market. 🏦✅
Thrilled to see measures for consumer protection being prioritized!
Loving the focus on transparency and security! Turkey is setting the bar high.
This is a fantastic step forward for Turkey! It’s about time we had clear regulations for the crypto market. 👏💪
This bill sounds like a nightmare for crypto traders . The government is just trying to control every aspect!
Forcing crypto exchanges to get licenses is just going to push innovation out of the country . Does anyone else feel like this is overkill?
Aligning with global standards is important, but does it have to be so restrictive? . What happened to freedom in financial innovation?
This new draft bill is very comprehensive. Kudos to the lawmakers!
Fantastic news! This will definitely attract more investors to the Turkish market.
Licensing through the CMB is a great move. Ensuring safe and regulated crypto trading is crucial.