🌋 Turkey to Refine Regulations for Crypto Businesses

  The Turkish Parliament will soon review a bill aimed at regulating the cryptocurrency sector. The discussions are scheduled to take place this week.

   The proposed legislation includes 19 articles that will establish the legal framework for crypto assets. It mandates that digital asset service providers obtain licenses from the Capital Markets Board (CMB). Beyond these basic provisions, the proposed regulations also address cybersecurity measures, rules for asset storage, and outline the responsibilities that operating companies owe to their users.

  The bill stipulates that operating without the necessary licenses could result in imprisonment for three to five years. Existing providers will have one month to apply for a license once the law is enacted, or they will need to cease operations within three months.

   This legislative push is prompted by Turkey being placed on the FATF’s grey list due to insufficient financial oversight and alleged financial support to sanctioned entities such as ISIS and Al-Qaeda. The grey-listed countries are subject to increased scrutiny by the FATF.

  Previously, the lack of formal recognition of cryptocurrencies made Turkey a tax haven, since crypto transactions and profits were neither officially recognized nor taxed. More details on crypto regulations in Turkey can be found in our article.