Turkey is close to finalizing its technical studies for the introduction of new crypto-currency legislation. According to Finance Minister Mehmet Şimşek, the legislation aims to boost confidence in this fast-growing sector and mitigate potential risks.
A new definition of Cryptographic assets
New Turkish legislation plans to redefine crypto assets in broad, flexible terms. This approach sees crypto-currencies as intangible assets, generated and stored electronically. It thus embraces the diversity of the crypto-currency world and its rapid evolution. The definition extends beyond Bitcoin and Ethereum. It also includes other forms of digital assets that may emerge. Turkey is demonstrating its desire to innovate in finance. At the same time, it is establishing a robust regulatory framework. This framework aims to manage the risks associated with these new asset forms.
Role of Turkey’s Capital Markets Board
Turkey’s Capital Markets Board (CMB) will play a crucial role in regulating the crypto-currency market in Turkey. As a regulatory body, the CMB will issue licenses to crypto-currency exchange platforms. It will also ensure that they meet strict operational standards. It will align these standards with those of traditional financial institutions. All the while, guaranteeing security and transparency in crypto-currency transactions. This step represents a significant effort to integrate crypto-currencies into the country’s formal regulatory framework, while protecting investors and users.
Alignment with international standards and timing
Turkey is seeking to improve its image on the international financial stage, notably by leaving the Financial Action Task Force (FATF) grey list. The new laws on crypto-currencies are part of this strategy. They aim to strengthen measures against money laundering and the financing of terrorism. Turkey plans to finalize the legislative proposals to coincide with the next FATF assessment in February, underlining its commitment to complying with international standards. This move illustrates the country’s determination to become a responsible and recognized player in the field of financial technologies and crypto-currencies.
