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17/05/24
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Turkish Authorities Introduce Draft Law to Align Crypto Regulation With Global Standards
On May 16, Turkish authorities presented a draft law to parliament to license and register crypto asset service providers, as they want to align with global standards and address Financial Action Task Force (FATF) concerns. The FATF repositioned Turkey to the “gray list” in 2021 because the authorities did not implement anti-money laundering measures.
Reuters’ report shows that the focus of the draft bill is updating current laws to comprehensively govern the crypto market. Areas covered by the proposed law include consumer protection, platform transparency and compliance with financial regulations.
The ruling party wants to regulate crypto trading platforms as well as other service providers within the sector, so they will be required to be licensed by Turkey’s Capital Markets Board (CMB) to operate.
Furthermore, the proposed law will establish measures to regulate cryptocurrency asset service providers, cryptocurrency asset platform operations, cryptocurrency asset storage, as well as transactions related to sales, purchases, and transfer of crypto by Turkish residents.
Likewise, the law extends to how crypto and projects are classified to ensure compliance with current financial regulations. Other highlights of the law include enhancement of CMB oversight towards protecting consumer assets and ensuring effective dispute resolution.
CMB and the Scientific and Technological Research Council of Turkey will be required to collect revenue from crypto service providers, and foreign crypto brokers will not be allowed to facilitate a local-based regulated ecosystem.
Part of the proposal includes the adoption of the FATF-issued travel guidelines which require virtual asset service providers (VASPs) to obtain and share “accurate originator information and beneficiary information” with counterparty VASPs or other financial institutions prior to or during transactions.
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