Turkey has introduced a new legislative proposal to supervise crypto asset service providers and their activities. The bill, presented to parliament by President Tayyip Erdogan’s party, focuses on licensing and registration obligations for crypto asset service providers.
The proposed law mandates that cryptocurrency trading platforms and related companies obtain licenses from Turkey’s Capital Markets Board (CMB). This step is part of Ankara’s efforts to align with international standards and improve its standing with the Financial Action Task Force (FATF).
Turkey Seeks to Regulate Cryptocurrencies and Exchanges
According to the law draft,, the regulations cover the supervision of crypto asset service providers. They also address activities of crypto platforms and transactions involving storage, purchase, and sale of crypto assets. The Financial Action Task Force downgraded Turkey to its grey list in October 2021 due to inadequate oversight of sectors vulnerable to money laundering and terrorism financing.
“The law regulates cryptoasset service providers, the activities of cryptoasset platforms, the storage of cryptoassets, and the purchase, sale, and transfer transactions of cryptoassets that can be carried out by persons residing in Turkey,” according to the proposal.
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The new regulations outline requirements for platform management, the range of services provided, and financial and operational standards. This legislative push comes after several smaller crypto trading platforms in Turkey went bankrupt, leaving thousands without access to their funds.
The bill does not include provisions for taxation. However, crypto service providers must contribute 1% of their revenue to both the CMB and the Scientific and Technological Research Institution of Turkey (TÜBİTAK). This 2% total aims to support regulatory and technological advancements.
Ankara has been working on this legislation for over two years, trying to mitigate risks in the crypto sector. The draft law allows the Capital Markets Board to establish secondary regulations and aims to establish regulatory procedures for crypto asset service providers.
Earlier this month, a team from the FATF met with Turkish authorities to discuss the upcoming report on Turkey. Following these regulatory enhancements, the government anticipates upgrading its FATF status.
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With the proposed law, Turkey aims to create a more secure and regulated crypto environment and ensure compliance with standards.
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