Turkey proposes aligning crypto legislation with international standards

cyptouser1 months agoCryptocurrencies News21
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The Turkish ruling party submitted the draft crypto bill to the parliament on May 16. The bill focuses on licensing and registration for crypto service providers and aligns with the international standard.

According to a Reuters report, the draft bill aims to update existing laws to comprehensively govern the nascent cryptocurrency market. The bill's key focus areas include consumer protection, platform transparency, and compliance with financial regulations.

The proposed legislation intends to regulate cryptocurrency trading platforms and other service providers in the sector, requiring them to obtain licenses from Turkey’s Capital Markets Commission.

Related: Turkey tops the world in stablecoin buying share vs. GDP

The draft law aims to govern crypto asset service providers, crypto asset platform operations, crypto asset storage, and crypto asset buying, selling, and transfer transactions that Turkish residents can carry out. The legislation also addresses the classification of cryptocurrencies and projects, ensuring compliance with existing financial regulations. Some of the key takeaways from the bill:

Crypto service providers must be licensed and regulated by the Capital Markets Board (SPK).Enhanced SPK oversight to protect consumer assets and ensure effective dispute resolution.Mandatory revenue collection from crypto service providers by SPK and TÜBİTAK.Ban on foreign crypto brokers to foster a locally regulated ecosystem.This move seeks to align Turkey with international standards and address the FATF’s concerns, enhancing the security and reliability of the national crypto market.

The draft law proposes to include the Financial Action Task Force (FATF)- issued travel guidelines. The FATF Travel Rule requires financial institutions involved in virtual asset sales and cryptocurrency companies, collectively known as VASPs, to obtain and share " accurate originator information and beneficiary information" with counterparty VASPs or other financial institutions prior to or during transactions.

Turkey was demoted to the “gray list" by the FATF in October 2021 due to its inability to implement Anti-Money Laundering measures in its banking, real estate, and other industries, susceptible to money laundering. The FATF requires countries on the gray list to actively cooperate in rectifying any shortcomings and subject them to heightened scrutiny.

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