Türkiye Prepares Strict Regulations for Crypto Assets, What Is the Impact for Investors?

DJVR...KJqR
13 Jan 2024
69

Turkey has entered the final stages of drafting crypto asset regulations , which aim to minimize risks and regulate trading platforms and transactions. This regulation is expected to improve licensing and operational standards, as well as help the country get off the “grey” list of international financial crime watchdog agencies.

Towards Safe and Controlled Regulation

Turkey's Minister of Finance and Treasury, Mehmet Şimşek, stated that the crypto asset regulations being prepared aim to create a safer environment for market players.
According to him, the regulations designed are not restrictive, but focus on eliminating uncertainty and controlling risks that may arise. Şimşek added that these steps were taken to reduce risks for those of you who transact with crypto assets in Turkey, in line with international practices.

In an effort to meet Financial Action Task Force (FATF) standards, Turkey has undertaken various crypto regulations through the central bank and the Financial Crimes Investigation Board (MASAK).

These measures allow the government to monitor transactions and transfers taking place on the platform. However, Şimşek emphasized that there is still more to be done to meet the only FATF standard that is not yet fully complied with, namely regarding crypto assets .

Operational and Licensing Standards
Şimşek emphasized that the main aim of this regulation is to regulate platforms and the transactions taking place on them. Licenses for crypto trading platforms will be issued by the Capital Markets Council (SPK), and will be subject to minimum operational requirements similar to financial institutions.
These requirements include conditions related to founders and managers, organizational obligations, capital requirements, and information technology infrastructure obligations. Turkey ranks fourth globally in raw crypto transaction volume , totaling about $170 billion over the past year, behind the US, India and the UK.
Şimşek explained that detailed operational requirements will be determined through secondary regulations. Definitions of crypto , crypto wallet , crypto service provider , crypto custody service , and crypto trading platform have been included in the draft, in line with international regulations.

Definition and Taxation of Crypto Assets


Crypto assets are broadly defined in the regulatory draft as “intangible assets created and stored electronically using distributed ledger technology or similar technology, distributed over a digital network, and capable of representing value or rights.”
Şimşek emphasized that the main focus at this stage is not taxation, and that issue will be studied separately. The draft will also include regulations that give SPK authority over crypto asset offerings and custody services.
Thus, Turkey is moving forward to create a solid framework for the country's growing crypto industry.

Closing Paragraph

With these steps taken, Turkey hopes to strengthen its financial system and increase security for those of you who invest in crypto assets . It is hoped that the regulations currently being prepared can become a model for other countries in regulating the dynamic and continuously developing crypto ecosystem.

Get fast shipping, movies & more with Amazon Prime

Start free trial

Enjoy this blog? Subscribe to Slashmoon

9 Comments