Turkey Prepares for Crypto Regulation, Aims to Reduce Trading Risks and Align with International Standards
Summary:
Turkey's Finance and Treasury Minister, Mehmet Şimşek, has disclosed details of the upcoming cryptocurrency regulations. The framework, nearing completion, will require licensing for trading platforms, provide legal definitions for various crypto concepts, and comply with FATF standards. This move aims to lessen crypto trading risks and align with international practices. The guidelines do not include a specific taxation framework for digital assets. Between July 2022 and June 2023, Turkey ranked fourth globally in cryptocurrency transactions, worth roughly $170 billion.
Turkey's Finance and Treasury Minister, Mehmet Şimşek, has disclosed certain aspects of the soon-to-be-implemented crypto regulations in the country. The government will clarify legal terms associated with crypto, adhere to the standards set by the Financial Action Task Force (FATF) and ensure licensing for cryptocurrency trading platforms. Şimşek informed the Anadolu Agency on January 10 about the nearing completion of the regulatory framework for cryptocurrency in the Turkish market and the technicalities involved in its execution. President Erdoğan's selection of a crypto professor for the central bank board is also noteworthy.
The minister highlighted government plans to lessen cryptotrading risks for common investors in alignment with global norms: "We are taking measures to limit potential risks for parties involved in cryptotrading within our country. This is synonymous with international practices and aligns with FATF's efforts to move out of the gray zone."
The forthcoming regulation will require cryptocurrency platforms to secure licenses from Turkey's Capital Markets Board (CMB). Further, legal interpretations of terms like 'crypto assets', 'crypto wallets', 'crypto asset service providers', 'crypto asset custodial service', and 'cryptocurrency trading platforms' will be provided. Şimşek gave the example of the 'crypto assets' definition: "Assets intangible in nature, which can be digitally created and stored using distributed ledger technology or similar, distributed over digital networks, capable of signifying value or rights."
The minister clarified that the regulations will not outline a specific taxation framework for digital assets. Turkey has been contemplating crypto market regulations focusing on licensing and taxation to remove itself from the FATF's "grey list". Based on data from blockchain analytics firm Chainalysis, from July 2022 to June 2023, Turkey ranked fourth worldwide in terms of cryptocurrency transaction volumes, recording approximately $170 billion in transactions, trailing the United States, India, and the United Kingdom.
Published At
1/10/2024 1:13:13 PM
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