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In a significant stride toward regulatory clarity, Turkey’s Minister of Treasury and Finance, Mehmet Simsek, announced the final stages of legal work on crypto assets. Recognizing the surging interest in cryptocurrency platforms, Şimşek emphasizes the necessity of regulation to mitigate associated risks.
Notably, the impending legislation, which Simsek said to have reached the final stage, aims to secure the crypto space while fostering blockchain technology development.
Turkey Nears Crypto Regulation Finish Line
Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, shared insights into the imminent cryptocurrency law, emphasizing its broad definition. According to Şimşek, crypto assets are described as “intangible assets created and stored electronically using distributed ledger technology.” The inclusive approach aims to future-proof the legislation against emerging cryptocurrencies.
In an interview with the state-run news agency Anadolu Agency in Turkey, Şimşek revealed details about the regulatory approach. According to his statement, the crypto asset trading platforms will require and obtain licenses from the CMB, subject to operational requirements similar to those for financial institutions.
In addition, he highlighted detailed conditions for founders, managers, organizational obligations, capital requirements, and IT infrastructure. These measures align with international practices, addressing concerns about abuses and extreme price fluctuations.
Furthermore, Şimşek clarified that the legislation doesn’t delve into taxation issues at this stage, emphasizing a separate study on the matter. Notably, the minister stressed the global landscape, where different countries adopt varying practices, and Turkey aims to align with international standards to regulate crypto assets effectively.
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Focus On Regulatory Compliance
In the quest for regulatory completeness, Şimşek underscored the importance of the Capital Markets Board’s (CMB) authority in allowing the issuance of capital market instruments as crypto assets. The legislation also authorizes the CMB to regulate the sale of crypto assets through crowdfunding, ensuring a comprehensive framework for blockchain technology development.
Meanwhile, Şimşek addressed concerns about Turkey’s position in the Financial Action Task Force (FATF) ‘partially compatible’ category. He stated that the pending legislation, with its focus on technical standards, is poised to elevate Turkey to a ‘compatible’ status, marking a pivotal step toward exiting the ‘partially compatible’ category.
Notably, Minister Şimşek emphasized that the primary goal of the regulatory effort is to enhance the safety of the crypto space, eliminate potential risks, and facilitate the growth of both blockchain technology and the broader cryptocurrency ecosystem. Considering the latest developments, Turkey seems to be racing to join the ranks of nations with clear, comprehensive crypto regulation for the burgeoning digital asset industry.
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