Regulation
What you need to know
On May 16, Turkey’s ruling party presented a cryptocurrency bill to parliament, aiming to transform the country’s crypto regulations. This bill focuses on the licensing and registration of crypto service providers to meet international standards and improve Turkey’s standing in the Financial Action Task Force (FATF), a global anti-money laundering and anti-money laundering watchdog. the financing of terrorism.
Here are the essential details.
Addressing FATF gray list status
In October 2021, Turkey was placed on the FATF gray list due to insufficient anti-money laundering measures in sectors such as banking and real estate. Being on the gray list means increased scrutiny and the need for active efforts to resolve these issues. The new bill represents a fundamental step towards solving these shortcomings.
Strengthen oversight of cryptocurrencies
The bill aims to regulate cryptocurrency trading platforms and other service providers by requiring them to obtain licenses from the Turkish Capital Markets Board (CMB). The CMB will have the authority to create further regulations and set guidelines for service providers and cryptocurrency transactions. This is especially important given the recent failures of smaller trading platforms.
Regulation for a modern market
According to a Reuters report, the bill is designed to update existing laws and comprehensively govern the cryptocurrency market. It covers all aspects of cryptocurrency service providers, including platform operations, asset storage, and transactions by Turkish residents.
The main objectives are consumer protection, platform transparency and compliance with financial regulations.
In step with international standards
The proposed legislation includes travel guidelines issued by the FATF, which require crypto companies and financial institutions involved in the sale of digital assets, known as Virtual Asset Service Providers (VASPs), to obtain and share accurate originator and beneficiary information with the counterparty’s VASPs or other financial institutions before or during transactions. This aims to improve transparency and traceability in the cryptocurrency industry.
Before presenting the bill, Turkish officials met with the FATF team awaiting the FATF report expected in June. The Turkish government hopes that the implementation of the new regulations will lead to an update from the FATF, demonstrating the country’s commitment to improving its financial regulatory framework.
Could it be a model for other countries to follow? Weight in.