Turkey affirmed its devotion to realizing clarity in crypto regulations with new rules set to position the country among responsible leaders of the digital assets industry. The upcoming regulations are set to harmonize the definition of digital assets, enhance investor protection, and refine crypto provider licensing.
The Turkish government reiterated its devotion to finalizing the long-awaited crypto regulations as illustrated by Finance Minister Mehmet Şimşek on Wednesday, January 10. The Finance Minister indicated that the technical aspects are in the final phase after extensive development.
Şimşek indicated that the new regulations assume a broad approach towards crypto assets governance. Also, the rules seek to boost investor protection besides playing the catalyst role for the industry to flourish.
Turkey Considers Landmark Crypto Regulations Catalyst for Digital Assets’ Sector
The draft bill features multiple definitions of various terminologies applicable to digital currencies. The draft regulation defines crypto assets as intangible assets that one can create and store electronically using distributed ledger technology.
The regulations provide a detailed description of crypto wallets, custody services, and trading platforms. Although not inclusive of taxation provisions, the detailed nature of the draft regulations is hailed by sources critical in Turkey’s quest to future-proof the rules and bring accountability for innovation in the evolving crypto space.
The critical component in the regulations is mandating the crypto trading platforms and other related service providers to seek approval for operating licenses from the Capital Markets Board (CMB).
The new rules mandate firms to satisfy the minimum standards regarding capitalization, organization, and infrastructure similarly applied to financial institutions.
The emphasis on clear licensing aims to foster accountability and lower the risks crypto investors bear. Primarily, the draft regulations aim to eliminate ambiguity in the legal status of crypto.
The resolve to define digital assets and develop the compliance framework applicable to the trading venues. Creating a harmonized framework is set to encourage entry and growth of legitimate crypto platforms while protecting everyday investors.
Turkey Eyes Compliance with FATF Anti-Money Laundering Guidelines
The new regulation aims to comply with the guidelines stipulated by the global anti-money laundering agency – the Financial Action Task Force (FATF).
Although crypto income taxation mandates separate legislation, Turkey is finalizing the comprehensive regulatory framework that mirrors the global push towards legal certainty on digital currencies.
The acceleration witnessed in crypto adoption fuels the push for regulatory clarity. Turkey considers that the comprehensive regulatory framework is a catalyst for reaping the benefits inherent in blockchain innovation.
With the new regulations, Turkey is edging closer in readiness to that charge. The commitment to satisfy the FATF guidelines mirrors the urge by China for joint regulation in the decentralized finance (DeFi).