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Turkey's Finance Minister, Mehmet Simsek, announced on Wednesday that the country's much-anticipated crypto asset regulations are reaching their conclusive phase.
Simsek emphasized that these regulations aim to establish licensing and operational standards for crypto trading platforms, primarily focusing on reducing the associated risks.
Additionally, implementing these regulations is viewed as a strategic move to remove Turkey from the "grey list" of an international financial crime watchdog.
Licensing and Operational Standards for Crypto Platform
Minister Simsek disclosed crucial details regarding the forthcoming regulations in an exclusive interview with the state-owned Anadolu news agency.
According to Reuters, he stated that crypto asset trading platforms would undergo licensing procedures administered by the Capital Markets Board (CMB).
The regulations will mandate minimum operating standards, encompassing conditions for founders and managers, organizational obligations, and capital requirements.
Turkey currently holds the fourth position globally in terms of raw crypto transaction volumes, reaching approximately $170 billion in the past year.
This substantial growth is attributed to the country's response to years of double-digit inflation, standing at around 65% last month and an over 80% drop in the lira against the dollar over five years.
A blockchain analytics firm Chainalysis report placed Turkey behind the U.S., India, and the United Kingdom in crypto transaction volumes.
Addressing International Concerns and Fostering Development
The urgency for these regulations escalated in 2021 when the Financial Action Task Force (FATF) placed Turkey on its "grey list" of countries susceptible to money laundering and other financial crimes.
Minister Simsek acknowledged this concern and assured that the regulations would also cover authorizations for the capital markets board regarding crypto asset offerings and custody services. He clarified that the initial regulation draft would not prioritize taxation issues.
According to Crypto Rank, Simsek underscored the broader perspective of the regulatory framework, stating, "Our main goal with crypto asset regulation is to make this field safer and to eliminate possible risks. Our approach is not restrictive; we aim to pave the way for the development of blockchain technology and the crypto asset ecosystem."
As Turkey approaches the final stages of these regulations, it anticipates a balanced approach to foster a secure and progressive crypto landscape.
Photo: Michael Jerrard/Unsplash
