On May 16, the Turkish ruling party presented a crypto bill to parliament, emphasizing licensing and registration for crypto service providers in alignment with global standards.
As per Reuters, the draft aims to modernize current laws to effectively oversee the cryptocurrency market, emphasizing consumer protection, platform transparency, and adherence to financial regulations.
The proposed law seeks to regulate cryptocurrency trading platforms and related service providers, mandating them to acquire licenses from Turkey’s Capital Markets Board (CMB).
The proposed legislation seeks to regulate various aspects of crypto asset services, platforms, storage, and transactions conducted by Turkish residents. It includes provisions for categorizing cryptocurrencies and projects, with a focus on aligning with established financial regulations. Key highlights of the bill include:
- Crypto service providers must be licensed and regulated by the Capital Markets Board.
- Enhanced CMB oversight to protect consumer assets and ensure effective dispute resolution.
- Mandatory revenue collection from crypto service providers by CMB and the Scientific and Technological Research Council of Turkey.
- Ban on foreign crypto brokers to foster a locally regulated ecosystem.
- This move seeks to align Turkey with international standards and address Financial Action Task Force (FATF) concerns, enhancing the security and reliability of the national crypto market.
The proposed legislation aims to incorporate the travel guidelines issued by the FATF. According to the FATF Travel Rule, virtual asset service providers (VASPs), including cryptocurrency companies and financial institutions involved in digital asset transactions, must acquire and exchange accurate originator and beneficiary information with counterparties or other financial entities before or during transactions.
In October 2021, Turkey was placed on the FATF’s “gray list” due to its failure to implement Anti-Money Laundering measures across various sectors, including banking and real estate. Countries on the gray list are required to actively cooperate in addressing deficiencies and are subjected to increased scrutiny by the FATF.
Read More: Binance executive refused bail during Nigeria money laundering trial
Disclaimer:
This content is AI-generated using IFTTT AI Content Creator. While we strive for accuracy, it’s a tool for rapid updates. We’re committed to filtering information, not reproducing or endorsing misinformation. – Jomotoday for more information visit privacy policy
Leave a Comment