Turkey is almost finished with its technical work on rules for digital assets, and the draft rules will be out soon, confirmed the country’s finance minister, Mehmet Şimşek.
These rules will focus on digital asset exchanges and aim to safeguard investors while establishing operational standards. The minister shared this information in an interview with the state-owned broadcaster Anadolu Agency.
Turkey Nears Cryptocurrency Regulation for Enhanced Safety
Turkey is getting close to making rules for cryptocurrencies to make them safer and reduce risks, said Finance Minister Mehmet Şimşek. They want to make sure things are clear and controlled without too many restrictions.
Turkey is a big hub for digital assets worldwide, especially as the lira’s value went down. Even though it’s popular for digital assets, Turkey still doesn’t have specific rules for them.
The new draft rules are crucial to stop platforms from being misused, especially after issues like the Thodex exchange collapse, which caused big losses for users. The minister says it’s vital to follow global practices to make crypto transactions safer in the country.
Turkey’s Cryptocurrency Rules Aim to Exit FATF Grey List
The new rules for digital assets in Turkey have two main goals, according to Finance Minister Mehmet Şimşek. They want to improve how cryptocurrencies work, and at the same time, help Turkey get off the Financial Action Task Force (FATF) grey list. FATF added Turkey to this list in 2021, asking for action against money laundering and terrorist financing.
By 2023, Turkey had dealt with most FATF suggestions, except the ones about digital assets. The draft rules aim to fix this, allowing Turkey to come off the grey list. This is important because being on the list affects Turkey’s ability to attract investments and loans from around the world.
According to the new rules, cryptocurrency exchanges must get a license from the Capital Markets Board. They also need to follow rules similar to those for financial institutions. These rules include things about the people starting the exchange, the organization’s responsibilities, how much money they should have, and the technology they use.
Minister Şimşek shared that the new rules define ‘crypto’ as “intangible assets created and stored electronically using distributed ledger technology or similar technology, distributed through digital networks, and capable of representing value or rights.”
Global Trends Influence Turkey’s Draft Cryptocurrency Rules
As Turkey finalizes its draft rules on digital assets, Finance Minister Mehmet Şimşek reveals that the country took cues from global regulatory patterns. However, he emphasizes that no country has taken a definitive lead in overseeing digital assets.
While Europe has advanced with its MiCA framework, Japan’s FSA actively oversees digital assets, South Korea initiated the first part of its regulatory framework in July, and Germany’s BaFin has guidelines covering innovative use cases like DeFi, comprehensive regulations are yet to be issued.
The minister highlights the diverse approaches adopted by countries, tailored to their unique financial and legal systems. He underscores the necessity for Turkey to take steps in shaping regulations specific to its context, considering the evolving landscape of crypto assets.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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