Turkey's Ruling Party Proposes Crypto Regulation Bill for Enhanced Market Security
Summary:
Turkey's ruling party has submitted a draft bill to parliament aimed at regulating the cryptocurrency market. The bill focuses on licensing and registration for crypto service providers, in alignment with international standards. Key provisions in the legislation include mandatory licensing from Turkey's Capital Markets Commission, a ban on foreign crypto brokers, and adherence to the Financial Action Task Force's guidelines. The proposal seeks to address consumer protection, transparency, and compliance with financial regulations, intending to enhance the security and reliability of Turkey's crypto market.
On May 16, the ruling party in Turkey presented a preliminary crypto regulation bill to the parliament. The proposed law, which is designed to provide licensing and registration schemes for cryptocurrency service providers, conforms to worldwide standards. The bill, as reported by Reuters, is intended to refurbish existing laws to competently oversee the burgeoning crypto sphere. Central aspects of the legislative proposal are consumer safegaurds, upholding financial regulations, and fostering transparency in platforms.
The proposed legislation seeks to provide regulation for cryptocurrency trading platforms as well as other service providers in the field. These entities would be required to secure licenses from the Capital Markets Board in Turkey. Aiming to regulate domestic residents' crypto-related activities spanning from buying to storage and transferring, the legislation also ensures compliance with existing financial regulations by defining the taxonomy of cryptocurrencies and projects.
Key insights from the proposed law include the necessity for crypto service providers to acquire licensure and be regulated by the Capital Markets Board (SPK); augmented SPK oversight to secure consumer assets and facilitate efficient resolution of disputes; obligatory revenue collection from crypto service providers steered by SPK and TÜBİTAK; and a prohibition on international crypto brokers, promoting a domestic, regulated ecosystem.
The initiative aligns Turkey with global standards and addresses issues raised by the FATF, which is expected to boost the safety and reliability of Turkey's crypto market. The draft law proposes adopting the FATF-imposed Travel Rule. This mandates financial institutions engaged in virtual asset sales and crypto firms—known collectively as VASPs—to procure and share "accurate originator and beneficiary information" with counterpart VASPs or other financial institutions ahead of or during transactions.
Turkey was relegated to the FATF's "gray list" in October 2021 due to its failure in enforcing anti-money laundering measures within sectors like banking and real estate that are prone to money laundering. Countries on the gray list are required by the FATF to collaborate actively in addressing shortfalls and are subject to heightened scrutiny.
Published At
5/17/2024 12:01:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.