Key takeaways:
- Mehmet Şimşek, Turkey’s Minister of Treasury and Finance, has leaked some information about the country’s impending crypto legislation.
- The new regulations would require cryptocurrency platforms to apply for licenses from Turkey’s Capital Markets Board (CMB).
Mehmet Şimşek, Turkey’s Minister of Treasury and Finance, has leaked some information about the country’s impending crypto legislation.
The government will license trading platforms, provide legal definitions for key terms in cryptocurrency, and adhere to FATF (Financial Action Task Force) guidelines.
Şimşek acknowledged that the crypto framework for the Turkish market is currently in the last phases of development, with technical implementation aspects being evaluated, in an interview with the Anadolu Agency on January 10.
In line with international norms, the minister underlined the government’s goal to lower the risks associated with cryptocurrency trading for regular investors:
“Therefore, we are taking steps to reduce the risks of parties trading with crypto assets in our country, similar to international practices. This is also within the scope of FATF to get out of the gray list.”
The new regulations would require cryptocurrency platforms to apply for licences from the Capital Markets Board (CMB) of Turkey.
Additionally, they will define terms related to cryptocurrency, such as wallets, buying and selling platforms, custody services, service providers, and assets. Şimşek has provided an illustration of the definition of crypto assets:
“intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology, distributed over digital networks, and capable of expressing value or rights.”
Şimşek went on to say that the rules do not account for the unique tax code pertaining to virtual assets.
For a while now, Turkish authorities have been thinking about regulating the country’s cryptocurrency sector, emphasizing licensing and taxes, to get the nation off of the FATF’s “grey list.”
Turkey’s economic standing has been negatively harmed by its inclusion on the FATF’s grey list. The Turkish economy, which has been struggling with issues including high inflation and being on the FATF’s radar since 2021, needed this endeavor to help rebuild confidence.
