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Turkey’s proposed cryptocurrency law will be presented in parliament
2024-05-13 01:35:49 ET
Turkish regulators have finalized a bill aimed at regulating cryptocurrencies in the nation. Second local
relationships
Abdullah Güler, chairman of the ruling Development and Justice Party (AK Party) group, chaired a meeting on this issue on May 12 to finalize the draft law.
Treasury and Finance Minister Mehmet Şimşek noted earlier this year that these measures are approaching the final stage of technical studies and are aimed at improving the operational standards of trading platforms.
The bill is expected to be presented to Parliament this week.
Legitimation of cryptocurrencies
The proposed legislation aims to establish a regulatory framework for cryptocurrency platforms. This initiative will involve licensing these platforms through the Capital Markets Board (SPK) and subsequently placing them under the supervision of SPK.
It will address the management of cash and cryptocurrency assets held on behalf of clients, detailing the relationships between platforms and their clients and outlining applicable fines and penalties.
Additionally, the draft includes provisions authorizing the SPK to grant permissions for the sale or distribution of cryptocurrency assets. These assets are linked to blockchain and other similar technologies, and the SPK can also impose specific conditions on their sale.
The Türkiye Scientific and Technological Research Council (TÜBITAK) will promote the development of software architecture for blockchain and related technologies, as provided for in the draft law.
Once implemented, these measures are expected to address the criticisms foreseen by Technical Standard No. 15 of the Financial Action Task Force (FATF). This could potentially move Turkey out of the “partially compliant” category and off the “grey list” of an international financial crime watchdog. ”
Cryptoeconomic boom in gray
Currently, Turkey has minimal regulations that directly impact the cryptocurrency market. Existing legislation includes a ban by the Central Bank of the Republic of Turkey on the use of cryptocurrencies for payments, stating that they are not legal tender.
Apart from this, the Financial Crimes Investigation Board (MASAK), under the Ministry of Finance, requires exchanges to collect Know Your Customer (KYC) data to curb money laundering and terrorist financing.
Turkey is a key player in the global cryptocurrency market, with one of the highest adoption rates globally. According to Chainanalysis, it ranks as the
the fourth largest
cryptocurrency market globally, with an estimated trading volume of $170 billion, surpassing countries such as Russia, Canada, Vietnam, Thailand and Germany.
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Turkey’s proposed cryptocurrency law will be presented in parliament
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