Turkey Proposes Crypto Legislation to Meet Global Norms

Turkey’s Recent Crypto Regulation Bill

In a significant development, Turkey has introduced a new crypto bill aimed at regulating the cryptocurrency market in line with global standards. The bill, tabled by the ruling party (AK Party) Group Chairperson Abdullah Güler on May 16, covers various aspects of the crypto industry to ensure transparency and consumer protection.

Key Provisions of Turkey’s Crypto Bill

• All cryptocurrency service providers in Turkey must obtain licenses and register with the Capital Markets Board (CMB).
• The bill grants the CMB expanded authority to safeguard consumer assets held by crypto service providers.
• The government prioritizes fostering a locally regulated ecosystem by prohibiting foreign crypto brokers from operating without proper licenses.
• The bill aligns Turkey’s crypto regulations with international standards set by the Financial Action Task Force (FATF).
• The draft incorporates the FATF’s “Travel Rule” to enhance transparency in digital asset transactions.

Background and Context

Turkey’s move to strengthen its crypto regulations follows concerns raised by the Financial Action Task Force (FATF) regarding the country’s Anti-Money Laundering (AML) measures. The government’s initiative to regulate the crypto space was accelerated to protect the nation’s fiat currency, the Turkish lira, from potential threats posed by cryptocurrencies.

Despite facing opposition from local crypto communities, Turkish authorities have engaged in dialogues to address concerns and create a more inclusive regulatory framework. The recent bill reflects Turkey’s efforts to balance citizen concerns while ensuring a secure and reliable crypto market.