[NEWS] Türkiye's cryptocurrency regulation draft in final stages, says finance minister

On the 10th, Turkish Finance Minister Mehmet Şimşek mentioned that the country's cryptocurrency regulations are in the final stages of finalizing a draft.

The government is looking to legally define the concept of cryptocurrency and make it compliant with FATF (Financial Action Task Force) standards, as well as consider introducing a licensing system.

"The regulations aim to reduce the risks of cryptocurrency transactions and remove Turkey from the grey list of international financial crime watchdogs," Şimşek told Turkish state media Anadolu Agency.

The guidelines will include regulations that empower the CMB (Turkish Capital Markets Board) in providing cryptocurrency and custody services.

Cryptocurrency exchanges will be licensed by the CMB and will be required to comply with various operating conditions, just like financial institutions. Conditions for founders and managers, organizational and IT infrastructure obligations, capital conditions, etc. will be imposed.

It also defined crypto assets as "intangible assets that can be created and stored electronically using distributed ledger technology, etc." At this stage, the regulation does not focus on taxation, and will be considered separately.

According to a report by blockchain analysis company Chainalysis, Turkey recorded about $170 billion (about 24.7 trillion yen) in cryptocurrency trading volume last year, ranking fourth in the world after the United States, India, and the United Kingdom.

FATF placed Turkey on the grey list in 2021. A report from July last year said that Turkey's lack of regulations on licensing or registering cryptocurrency service providers may limit the authorities' regulatory ability. This was the last of 40 recommendations that Turkey needs to address or partially comply with.

Reference:Press
Image: Shutterstock

Related articles

South Korean regulators accept information on unregistered cryptocurrency businesses, stepping up crackdown

Monetary Authority of Singapore strengthens regulations on cryptocurrency investment, banning leveraged transactions, etc.