Turkey Approaches Final Stage in Crypto Regulation Advancement

Turkey is approaching the completion of its crypto regulations, highlighting a focus on international alignment and comprehensive oversight for the advancement of blockchain development.

In a notable move towards regulatory transparency, Turkey’s Minister of Treasury and Finance, Mehmet Simsek, declared the conclusive phases of legal efforts concerning crypto assets.

Acknowledging the growing interest in cryptocurrency platforms, Şimşek underscores the imperative need for regulation to mitigate associated risks.

Significantly, the imminent legislation, reportedly in its final stage according to Simsek, seeks to secure the cryptocurrency space while promoting the development of blockchain technology.

Turkey Approaches the Final Stages of Crypto Regulation
Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, provides insights into the forthcoming cryptocurrency law, emphasizing its all-encompassing definition.

Şimşek characterizes crypto assets as “intangible assets created and stored electronically using distributed ledger technology,” taking an inclusive stance to future-proof the legislation against emerging cryptocurrencies.

In an interview with Turkey’s state-run news agency Anadolu Agency, Şimşek reveals details about the regulatory approach.

He states that crypto asset trading platforms will require licenses from the CMB, subject to operational requirements similar to those for financial institutions.

Additionally, Şimşek outlines specific conditions for founders, managers, organizational obligations, capital requirements, and IT infrastructure.

These measures align with international practices, addressing concerns related to abuses and extreme price fluctuations.

Notably, he clarifies that the legislation currently doesn’t cover taxation issues, emphasizing a separate study dedicated to that matter.

The minister underscores the diverse global landscape, where countries adopt varying practices, and Turkey aims to align with international standards for effective regulation of crypto assets.

Emphasis on Regulatory Adherence
In the pursuit of comprehensive regulation, Şimşek underscores the Capital Markets Board’s (CMB) pivotal role in authorizing the issuance of crypto assets as capital market instruments.

The legislation also grants the CMB authority to supervise the crowdfunding sale of crypto assets, establishing a thorough framework for blockchain technology development.

Addressing concerns about Turkey’s position in the Financial Action Task Force (FATF) ‘partially compatible’ category, Şimşek notes that the pending legislation, focusing on technical standards, aims to elevate Turkey to a ‘compatible’ status—a crucial move toward exiting the ‘partially compatible’ category.

Importantly, Minister Şimşek emphasizes that the primary goal of these regulatory efforts is to enhance the safety of the crypto space, mitigate potential risks, and foster the growth of both blockchain technology and the broader cryptocurrency ecosystem.

With these recent developments, Turkey seems to be rapidly advancing towards joining nations with clear and comprehensive crypto regulation for the flourishing digital asset industry.

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