Turkish Cryptocurrency Law to Home – Fin Tech

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Despite being one of the most active and preferred countries for crypto service providers and crypto asset projects, Turkey has yet to regulate the crypto market.

This is about to change, and the new law will cement Turkey’s position as a cryptocurrency-friendly country.

The final keys are created by design based on the high expectations of traditional financial institutions such as banks and brokerage houses as well as crypto market service providers. This time, the highest government official, the Minister of Finance and Finance, Mr. Šimsek, is fulfilling this expectation, who announced that the relevant law will be adopted very soon.

Turkey has been graylisted by the Financial Action Task Force (“FATF”) since October 21, 2021. Mr. Simsek felt it necessary to establish a functional and modern crypto-regulation in Turkey to address some of the concerns raised by the FATF. gray list.

Here’s what we expect from the new regulation:

The new regulation focuses on the identification, categorization and licensing of crypto market service providers such as exchanges, custody services, wallet services, brokerage activities, OTC trading, etc.

Capital Markets Board of Turkey (“CMB“) will be the regulatory agency for issuing licenses, supervising and monitoring the market and activities of crypto market service providers.

Licensing requirements will focus on ensuring high technical competence and cyber resilience, financial reliability, corporate governance and administrative good reputation and good compliance of service providers. Providing services related to cryptographic assets without a license will be subject to administrative and criminal fines and penalties.

The new law allows for “security tokens” and crowd-funding with token projects subject to CMB licensing and leaves detailed regulations to the CMB. We therefore expect that soon after the law is passed, the CMB will be busy preparing regulations on the detailed categorization of crypto-assets and their launch requirements.

Based on the differences between e-money tokens, security tokens, utility tokens, etc., different regulatory agencies may have the authority to issue relevant licenses and regulate ICOs.

The future bill and secondary regulations would govern the remote user login process, which is key to resolving the conflict between privacy and anti-money laundering regulations.

Tax matters related to activities on the crypto-asset market will not be addressed in the new law.

We expect crypto market players and investors to see Turkey as a country of origin for cryptocurrencies with reliable and predictable crypto regulations.

The content of this article is intended to provide a general guide to the issue. Professional advice should be sought regarding your particular situation.

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