The Turkish government is putting the finishing touches on its long-awaited cryptocurrency regulations. According to Finance Minister Mehmet Şimşek, the technical aspects of the new regulations are currently being finalized after an extensive development process.
The regulations take a broad approach to managing cryptocurrency assets and aim to strengthen investor protection while allowing the industry to thrive.
key point
- Turkey is in the final stages of developing cryptocurrency regulation.
- Cryptocurrency platforms must obtain a license from the Turkish Capital Market Commission.
- The regulations define important concepts such as “crypto-asset”, “crypto-currency wallet”, “crypto-asset service provider”, etc.
- These rules aim to reduce risks for cryptocurrency investors and ensure compliance with international standards such as FATF.
- Cryptocurrency taxation is being studied separately and will not be included in future regulations.
The draft bill includes detailed definitions of key terms related to digital currencies. Crypto assets are defined as “intangible assets that can be created and stored electronically using distributed ledger technology or similar technologies.”
These rules also define concepts such as cryptocurrency wallets, trading platforms, custody services, etc. According to the sources, Turkey aims to future-proof its regulations to account for innovation in the rapidly evolving cryptocurrency space.
A key component of the regulation requires cryptocurrency trading platforms and service providers to obtain an operating license from the Turkish Capital Markets Board (CMB).
Businesses must meet minimum standards regarding organization, capitalization, infrastructure, etc., similar to the requirements already applicable to financial institutions. Creating clear licensing rules aims to increase accountability and reduce risk for cryptocurrency investors.
The overall goal is to remove ambiguity about the legal status of cryptocurrencies in Turkey. By legally defining digital assets and establishing a compliance framework for trading venues, regulators hope to encourage the growth of legitimate platforms and protect ordinary investors.
The government also plans to comply with the guidelines set forth by the Financial Action Task Force (FATF), a global anti-money laundering watchdog.
While taxation of cryptocurrency income requires separate legislation, Turkey’s comprehensive regulatory approach reflects global efforts to create legal certainty for digital currencies.
As cryptocurrency adoption accelerates globally, establishing the rule of law may be key for countries seeking to benefit from blockchain innovation. With the new regulations, Turkey appears ready to lead this charge.