Turkey Proposes Crypto Bill to Align with International Standards

The ruling Democratic Party in Turkey sent the draft crypto bill to the Parliament on May 16. The bill addresses licensing and registration of crypto service providers as one of its main issues. The proposal aims to bring the Turkish crypto market in line with international standards, focusing on protecting consumers, ensuring transparent platforms, and complying with financial regulations.

Turkey Is Aligning with Global Crypto Standards

The bill will revise the current regulations to better manage the cryptocurrency market. It will examine crypto trading platforms and other services and require them to acquire permits from the Turkish Capital Market Board (CMB). The goal is to ensure that providers of crypto asset services operate in an environment with a regulated framework to promote transparency and responsibility within the sector.

The legislation’s main purpose is consumer protection. Enhanced supervision of the CMB aims to protect consumer funds and provide mechanisms for timely dispute settlement. This bill aims to build trust and reliability in the national crypto market by insisting that the crypto platforms’ rules and regulations are strictly allied.

Related: Turkey announces upcoming crypto regulations to enhance investor protection

The draft law contains provisions geared toward bringing the legal framework in line with the principles promoted on a global scale. Another important aspect is the CMBs and the Scientific and Technological Research Council of Turkey’s regulation of mandatory income collection from crypto service providers. This includes provisions meant to ensure that the economic activities of crypto service providers are aligned with the national economy and drive technological development.

Proposed Law Aims for Crypto Transparency

The proposed law aims to address cryptocurrency classification and related projects. It sets up a framework to identify and manage cryptocurrency assets, bringing order and clarity to the crypto space. This law aligns with the Financial Action Task Force (FATF) rules, emphasizing financial regulation in the crypto industry.

The Turkish crypto regulation is also expected to address issues the FATF previously highlighted. In October 2021, the FATF placed Turkey on the “gray list” due to inadequate anti-money laundering measures in various industries, including banking and real estate. The proposed bill includes provisions to fix these inadequacies and ensure Turkey meets FATF standards.

An essential part of the bill is the FATF-issued travel directive, which is to be incorporated into the text. As per the FATF Travel Rule, virtual asset service providers (VASPs) must obtain and send complete originator and beneficiary data to each other during any transfers.

Cryptopolitan reporting by Mutuma Maxwell