Türkiye is nearing completion of comprehensive cryptocurrency regulatory framework
[ad_1]
The Turkish government will establish legal definitions of key cryptocurrency concepts, regulate trading platforms through licensing, and comply with Financial Action Task Force (FATF) standards.
in a interview On January 10, Turkish Finance Minister Mehmet Şimşek confirmed with Anadolu Agency that a cryptocurrency framework tailored for the Turkish market is nearing completion, and work is currently focused on evaluating the technical aspects of its implementation.
Şimşek emphasized that the upcoming regulations aim to mitigate the risks associated with cryptocurrency trading and protect ordinary investors. Key aspects of these regulations include legal definitions of key crypto-related terms, such as “crypto-asset,” “crypto-wallet,” and “crypto-asset service provider.”
Additionally, the guidelines will require cryptocurrency platforms to obtain a license from Turkey’s Capital Markets Board (CMB).
Şimşek clarified that while the regulations provide a clear framework for cryptocurrency trading, they will not establish a specific tax regime for virtual assets. He also provided an example of how to define a cryptoasset: an intangible asset that is created and stored electronically using distributed ledger technology or similar technology, is distributed over a digital network, and is capable of representing value or rights.
This regulatory move comes after Turkey has been considering cryptocurrency regulation since May 2022. President Recep Tayyip Erdogan’s AK Party has previously proposed minimum capital requirements of 100 million lira (equivalent to $3.4 million) for cryptocurrency businesses, although this proposal has not Not approved. It has not yet been discussed publicly.
Early November 2023, Himshek Announce The introduction of encryption legislation highlights Turkey’s compliance with 39 of the 40 FATF standards. The country plans to exit the FATF’s “grey list” where it has been on since 2021. That status affects confidence in Turkey’s economy, which is already strained by high inflation.
Amid these economic challenges, cryptocurrencies have become increasingly popular in Turkey, offering many people an alternative financial option. Chainaanalysis is a blockchain analysis company, report Between July 2022 and June 2023, Turkey ranked fourth in the world in cryptocurrency trading volume, with a transaction volume of approximately $170 billion, behind the United States, India and the United Kingdom.
