Türkiye proposes bringing cryptocurrency legislation in line with international standards

Türkiye’s ruling party submitted a draft cryptocurrency bill to parliament on May 16. The bill focuses on licensing and registering cryptocurrency service providers and ensuring compliance with international standards.

According to a Reuters report, the draft bill aims to update existing laws to comprehensively govern cryptocurrency markets. Key focus areas of the bill include consumer protection, platform transparency, and financial regulatory compliance.

The proposed law would regulate cryptocurrency trading platforms and other service providers in the sector, requiring them to obtain a license from Turkey’s Capital Markets Board (CMB).

Related: Türkiye ranks first in the world in proportion of stablecoin purchases compared to GDP

The draft bill aims to govern cryptocurrency service providers, cryptocurrency platform operations, cryptocurrency storage, and cryptocurrency purchase, sale and transfer transactions by Turkish residents. The bill also addresses the classification of cryptocurrencies and projects and ensures compliance with existing financial regulations. Highlights of the bill include:

• Cryptocurrency service providers must be licensed and regulated by the Capital Markets Board.
• Enhanced CMB oversight to protect consumer assets and ensure effective dispute resolution.
• CMB and the Turkish Scientific and Technological Research Council have mandatory revenue collection from cryptocurrency service providers.
• Foreign cryptocurrency brokers are banned to foster a local regulated ecosystem.
• The move seeks to improve the security and reliability of the domestic cryptocurrency market by aligning Turkey with international standards and addressing the concerns of the Financial Action Task Force (FATF).

The draft law proposes to include travel guidance issued by FATF. The FATF Travel Rule requires cryptocurrency companies and financial institutions involved in the sale of digital assets (collectively, virtual asset service providers (VASPs)) to obtain “accurate sender information and beneficiary information” before or during a transaction, including the counterparty VASP or other financial institution. Request that it be shared with the agency. .

Turkey was downgraded to the “grey list” by FATF in October 2021 for failing to enforce anti-money laundering measures in banking, real estate and other industries. FATF requires countries on the gray list to fully investigate and cooperate actively to correct any shortcomings.

magazine: CZ was sentenced to prison, Gensler deemed Ether a security, and the FBI targeted Mixer. Hodler’s Digest, April 28-May 4