The draft law aims to regulate crypto service providers, platform operations, storage, and transactions involving buying, selling, and transferring crypto assets.
Turkey’s ruling party submitted a draft crypto bill to parliament on May 16. The bill focuses on licensing and registration for crypto service providers to match international standards.
A Reuters report says the draft bill aims to update existing laws to fully govern the cryptocurrency market. Key areas include consumer protection, platform transparency, and compliance with financial regulations.
The proposed law intends to regulate cryptocurrency trading platforms and other service providers, requiring them to obtain licenses from Turkey’s Capital Markets Board (CMB).
The draft law aims to regulate crypto service providers, platform operations, storage, and transactions by Turkish residents. It also addresses the classification of cryptocurrencies and projects, ensuring they comply with current financial rules. Key points of the bill include:
- Crypto service providers must be licensed and regulated by the Capital Markets Board.
- Enhanced oversight by the CMB to protect consumer assets and ensure effective dispute resolution.
- Mandatory revenue collection from crypto service providers by the CMB and the Scientific and Technological Research Council of Turkey.
- Ban on foreign crypto brokers to promote a locally regulated ecosystem.
This move aims to align Turkey with international standards and address concerns from the Financial Action Task Force (FATF), improving the security and reliability of the national crypto market.
The draft law includes the FATF-issued travel guidelines. The FATF Travel Rule requires cryptocurrency companies and financial institutions involved in digital asset sales—known as virtual asset service providers (VASPs)—to obtain and share accurate originator and beneficiary information with counterpart VASPs or other financial institutions before or during transactions.
Turkey was placed on the FATF ”gray list” in October 2021 for failing to implement Anti-Money Laundering measures in its banking, real estate, and other industries. The FATF requires gray-listed countries to actively work on fixing any issues and subjects them to increased scrutiny.
Featured image from: cointelegraph.com