The Turkish government is in the final stages of developing crypto asset regulations, including licensing and operating standards for trading platforms, aiming to address the risks associated with crypto trading.
Finance Minister Mehmet Simsek highlighted the goal of enhancing trust in the crypto space and eliminating potential risks. The regulatory framework is part of Turkey’s efforts to be removed from the FATF’s “grey list.”
The proposed regulations mandate crypto platforms to obtain licenses from Turkey’s Capital Market Board (CMB) and establish legal definitions for various crypto-related terms. Simsek provided an example of the regulation’s definition of “crypto assets.”
The importance of incorporating licensing standards into the forthcoming crypto framework was highlighted by BlockchainIST Center Director Bora Erdamar a few months ago. He emphasized that these standards are crucial to preventing abuse of the system. Erdamar envisions a comprehensive regulatory framework that includes digital security protocols, advanced custody services, mandatory proof of reserves, and capital adequacy requirements.
Turkey, ranking fourth globally in raw crypto transaction volumes, seeks to enact stricter legislation to address concerns and boost trust in the sector. The popularity of digital currencies in Turkey is attributed to citizens seeking alternatives amid years of double-digit inflation rates, reaching around 65% in December.
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