New Bill in Turkey Strengthens Control Over Cryptocurrencies: Key Information You Must be Aware of
Turkey has taken a significant step towards transforming its crypto regulations by submitting a draft bill to parliament. The bill focuses on licensing and registering crypto service providers to meet international standards and improve Turkey’s standing with the Financial Action Task Force (FATF), a global watchdog for money laundering and terrorist financing.
One of the main objectives of the bill is to address Turkey’s placement on the FATF gray list in October 2021. This list is reserved for countries with inadequate anti-money laundering measures in sectors like banking and real estate. To rectify this, the proposed legislation aims to strengthen oversight of the crypto industry by requiring crypto trading platforms and other service providers to obtain licenses from Turkey’s Capital Markets Board (CMB). The CMB will also have the authority to establish additional regulations and guidelines for crypto asset service providers and transactions.
The bill seeks to regulate all aspects of crypto asset service providers, including platform operations, asset storage, and transactions conducted by Turkish residents. Its primary objectives are to ensure consumer protection, enhance platform transparency, and promote compliance with financial regulations.
To align with international standards, the legislation incorporates travel guidelines issued by the FATF. These guidelines require crypto 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 counterparties or other financial institutions before or during transactions. This measure aims to improve transparency and traceability in the crypto sector.
Before presenting the bill, Turkish officials held discussions with the FATF team, anticipating the release of the FATF’s report in June. The Turkish government hopes that implementing these new regulations will result in an upgrade from the FATF, showcasing the country’s commitment to enhancing its financial regulatory framework.
This proposed crypto bill in Turkey could serve as a model for other countries grappling with crypto regulations. It tackles important issues such as licensing, oversight, and compliance with global standards, making it a comprehensive and forward-thinking approach to regulating the crypto market.