The Turkish parliament is considering a new law to regulate crypto asset service providers. The proposal includes mandatory licensing and aims to align with FATF standards, enhancing regulatory oversight of the crypto industry.
Turkey has introduced a new legislative proposal aimed at regulating crypto asset service providers and their activities. The bill, presented to parliament by President Tayyip Erdogan’s party, focuses on imposing licensing and registration obligations on cryptocurrency trading platforms and related companies. This move is part of Ankara’s broader efforts to align with international standards and improve its compliance with the Financial Action Task Force (FATF).
The proposed law mandates that cryptocurrency trading platforms and companies dealing in crypto assets obtain licenses from Turkey’s Capital Markets Board (CMB). It aims to enhance supervision and ensure that these entities adhere to stringent regulatory standards. The draft law covers the activities of crypto asset service providers, including the storage, purchase, sale, and transfer of crypto assets by residents in Turkey.
This legislative effort follows Turkey’s downgrade to the FATF grey list in October 2021 due to inadequate oversight of sectors vulnerable to money laundering and terrorism financing. By implementing these regulations, Turkey hopes to address these deficiencies and strengthen its financial system's integrity.
However, the proposal does not include any provisions related to taxes on crypto assets, focusing solely on regulatory and compliance measures. The law also targets foreign crypto exchanges, imposing penalties for unlicensed operations within Turkey.
