- The bill is in line with global norms and focuses on crypto service provider registration.
- The proposed bill also handles the categorization of cryptocurrencies and projects.
On May 16, the governing party of Turkey sent a crypto bill draft to parliament. The bill is in line with global norms and focuses on crypto service provider registration and licensing.
The goal of the proposed bill is to make the Capital Markets Board (CMB) in Turkey the go-to place for licensing for crypto trading platforms and other related service providers.
Compliance with Financial Legislation
The purpose of the proposed legislation is to revise current regulations so that they more thoroughly control the cryptocurrency industry, as stated in a Reuters article. Protecting consumers, making platforms more transparent, and ensuring compliance with financial legislation are the main goals of the measure.
Moreover, crypto asset service providers, platform operations, storage, and transactions involving the purchase, sale, and transfer of crypto assets by Turkish residents are all intended to be regulated by the proposed legislation.
To further guarantee conformity with pre-existing financial norms, the bill also handles the categorization of cryptocurrencies and projects. Proposed in the bill is an amendment to incorporate the Travel Guidelines provided by the Financial Action Task Force (FATF).
According to the FATF Travel Rule, financial institutions and cryptocurrency companies that deal in digital asset sales (together referred to as VASPs) must get and share “accurate originator information and beneficiary information” with other financial institutions or counterparty VASPs prior to or during transactions.
Because of its banking, real estate, and other businesses’ lack of Anti-Money Laundering procedures, Turkey was downgraded to the “gray list” in October 2021 by the FATF. Countries on the FATF’s gray list are subject to increased scrutiny and are required to work together to fix any deficiencies.
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