Regulation
Turkey proposes law to regulate crypto and exchanges
Turkey has presented a new legislative proposal aimed at supervising crypto asset service providers and their activities. The bill, introduced to Parliament by President Tayyip Erdogan’s party, focuses on licensing and registration requirements for crypto asset service providers.
The proposed law requires cryptocurrency trading platforms and related companies to 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 position with the Financial Action Task Force (FATF).
Turkey seeks to regulate cryptocurrencies and exchanges
According to law Project,, the regulations cover the supervision of crypto asset service providers. They also deal with the activities of crypto platforms and transactions involving the storage, purchase and sale of crypto assets. Financial Action Task Force downgraded Türkiye on its gray list in October 2021 due to insufficient oversight of sectors vulnerable to money laundering and terrorist financing.
“The law regulates crypto-asset service providers, the activities of crypto-asset platforms, the storage of crypto-assets and the purchase, sale and transfer transactions of crypto-assets which may be carried out by persons residing in Turkey.” according to to the proposal.
Learn more: Crypto regulation: what are the advantages and disadvantages?
The new regulations outline platform management requirements, the range of services provided as well as financial and operational standards. This legislative push comes after several small crypto trade platforms in Türkiye have gone 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 Institute of Turkey (TÜBİTAK). This total of 2% aims to support regulatory and technological advances.
Ankara has been working on this legislation for over two years, trying to mitigate risks in the crypto sector. The bill allows the Capital Markets Board to establish secondary regulations and aims to establish regulatory procedures for crypto asset service providers.
Turkish Crypto Initiative. Source: uzmancoin.com
Earlier this month, a team from FATF met with Turkish authorities to discuss the upcoming report on Turkey. Following these regulatory improvements, the government plans to upgrade its status with the FATF.
Learn more: How to Reduce Your Crypto Tax Liability: A Complete Guide
With the proposed law, Turkey aims to create a safer environment and regulated cryptographic environment and guarantee compliance with standards.
Disclaimer
In accordance with the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and current information. Readers are, however, advised to independently verify the facts and seek professional advice before making any decision based on this content. Please note that our Terms and conditions, Privacy PolicyAnd Disclaimer have been updated.