Crypto News – Turkey Crypto Legislation: Bridging the Gap to International Standards
Crypto News – The draft cryptocurrency bill was presented to parliament by the ruling party of Turkey on May 16. The bill is in line with the international standard and focuses on licensing and registration for crypto service providers. A Reuters report states that the draft bill intends to modernize current legislation in order to fully regulate the emerging cryptocurrency business.
The three main areas of concentration for the law are financial regulation compliance, platform transparency, and consumer protection. By mandating that crypto trading platforms and other industry service providers apply for licenses from Turkey’s Capital Markets Commission, the proposed legislation aims to regulate the industry.
Things to Know About the Bill
The draft law intends to regulate cryptocurrency asset service providers, cryptocurrency asset platforms, cryptocurrency asset storage, and cryptocurrency asset transactions that citizens of Turkey may engage in. The law ensures adherence to current financial standards by addressing the classification of cryptocurrencies and projects. Key lessons to be learned from the measure include:
- The Capital Markets Board (SPK) must license and regulate cryptocurrency service providers.
- Improved SPK supervision to safeguard customer assets and guarantee efficient dispute settlement.
- Required income collection by SPK and TÜBİTAK from cryptocurrency service providers.
- Prohibition of international cryptocurrency brokers to promote a regionally governed market.
By taking this action, Turkey hopes to improve the security and dependability of its domestic cryptocurrency market while also complying with international norms and allaying the concerns raised by the FATF.
FAQ
What is the FATF Rule?
The risk-based approach, which highlights the necessity for nations to identify and comprehend the money laundering and terrorist funding dangers they are exposed to, is the cornerstone of the FATF Recommendations. This guarantees that they may use their efforts to reduce risks in the regions with the highest risk.
What is the Purpose of AML?
The goal of anti-money laundering (AML) measures is to stop criminals from converting funds earned through illicit activity, or “dirty money,” into legitimate revenue, or “clean money.” This is accomplished by a combination of laws, rules, and processes.
What is the Turkish Capital Markets Commission?
The primary regulatory and supervisory body in charge of the securities markets in Turkey is the Capital Markets Board. The CMB oversees and controls the capital markets, institutions, and investment products with the authority granted by the Capital Market Law.
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