On May 16, Turkey’s ruling Democratic Party presented a draft crypto bill to Parliament. The legislation primarily focuses on the licensing and registration of crypto service providers. Aimed at aligning Turkey’s crypto market with international standards, the bill prioritizes consumer protection, transparent platforms, and adherence to financial regulations.
Aligning with Global Crypto Standards
The proposed law aims to update existing regulations to manage the burgeoning cryptocurrency market better. It mandates that crypto trading platforms and related services secure permits from the Turkish Capital Market Board (CMB). This measure is designed to ensure that crypto service providers operate within a regulated framework, promoting transparency and accountability within the sector. The bill’s central objective is to protect consumers by enhancing CMB’s oversight, safeguarding consumer funds, and providing mechanisms for resolving disputes promptly. By enforcing strict compliance with established rules, the bill seeks to build trust and reliability in Turkey’s national crypto market.
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The draft legislation also includes provisions to align the economic activities of crypto service providers with the national economy. It mandates mandatory income collection from these providers, regulated by the CMB and the Scientific and Technological Research Council of Turkey. These measures aim to drive technological development and ensure that the economic activities of crypto service providers contribute positively to the national economy. The bill’s framework is designed to bring Turkey’s legal environment in line with global standards, promoting principles endorsed on an international scale.
Enhancing Transparency and Addressing FATF Concerns
A significant aspect of the proposed law is its focus on classifying and managing cryptocurrency assets, bringing clarity and order to the crypto space. The legislation aligns with the Financial Action Task Force (FATF) regulations, emphasizing the importance of financial oversight in the crypto industry. In response to Turkey being placed on the FATF “gray list” in October 2021 for inadequate anti-money laundering measures, the bill addresses these deficiencies. It incorporates the FATF Travel Rule, which requires virtual asset service providers to obtain and share complete originator and beneficiary data during transfers. This move is expected to enhance transparency and ensure Turkey meets FATF standards, further reinforcing the country’s commitment to global financial norms.