Turkish crypto bill set to be presented in parliament
Regulators in Turkey have finalized a bill set to regulate cryptocurrencies in the nation. According to local reports, Abdullah Güler, Group Chairperson of the ruling Development and Justice Party (AK Party), chaired a meeting on this matter on May 12 to finalize the draft law.
Treasury and Finance Minister Mehmet Şimşek noted earlier this year that these measures are nearing the final phase of technical studies and aim to enhance the operational standards of trading platforms.
The draft law is scheduled to be presented to Parliament this week.
Legitimising cryptocurrencies
The proposed legislation intends to establish a regulatory framework for cryptocurrency platforms. This initiative will involve licensing these platforms through the Capital Markets Board (SPK) and subsequently placing them under SPK supervision.
It will address the management of cash and cryptocurrency assets held on behalf of customers, detailing the relationships between platforms and their customers, and outlining the sanctions and penalties applicable.
Further, the draft includes provisions that authorize the SPK to grant permissions for the sale or distribution of cryptocurrency assets. These assets are linked to blockchain and other similar technologies, and the SPK may also impose specific conditions on their sale.
The Scientific and Technological Research Council of Türkiye (TÜBITAK) will foster the development of software architecture for blockchain and related technologies, as mandated in the draft bill.
Upon implementation, these measures are expected to address the criticisms under the Financial Action Task Force (FATF) Technical Standard No. 15. This could potentially move Türkiye out of the “partially compliant” category and off an international financial crime watchdog’s “gray list.”
Booming crypto economy in the grey
Currently, Turkey has minimal regulations directly affecting the cryptocurrency market. Existing regulations include a ban by the Central Bank of the Republic of Turkey on using cryptocurrencies for payments, asserting that these are not legal tender.
On top of this, the Financial Crimes Investigation Board (MASAK), under the Ministry of Finance, mandates that exchanges collect Know Your Customer (KYC) data to curb money laundering and terrorism financing.
Turkey is a key player in the global cryptocurrency market, with one of the highest adoption rates worldwide. According to Chainanalysis, it ranks as the fourth-largest crypto market globally, with an estimated trading volume of $170 billion, surpassing countries like Russia, Canada, Vietnam, Thailand, and Germany.
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