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The cryptocurrency bill in Turkey will likely be presented to parliament this week

Published 14/05/2024, 12:10 am

Investing.com - The crypto bill, which has been in the making in Turkey for some time, has reached its final stages. It is expected that the bill will be presented to the parliament this week.

Earlier this year, Finance Minister Mehmet Şimşek hinted at the advanced stages of technical studies on crypto trading in Turkey, emphasizing comprehensive efforts to set standards for the sector. It's been reported that once the crypto draft is finalized, it will be on the parliamentary agenda this week.

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Supervision of the crypto market by the Capital Markets Board (SPK) is expected

With crypto draft prepared, a regulatory framework is now expected. Domestic and foreign cryptocurrency platforms operating in Turkey have also accelerated their activities to comply with the proposed law for some time. In this context, it seems likely that crypto platforms will obtain licenses from the Capital Markets Board and their supervision will be carried out by the SPK.

In this regard, the SPK is expected to ensure the supervision of crypto assets and cash amounts held on behalf of users on crypto platforms and to control the adequacy of capital for these companies. The regulatory authority is also expected to have the authority to impose sanctions and penalties in case of possible misconduct by crypto companies.

Furthermore, according to the information provided so far, the SPK will also have authority over the sale and distribution of crypto assets.

Turkey’s removal from the gray list

Efforts to have in place a crypto bill in Turkey are crucial for the country to be removed from the gray list.

Finance Minister Mehmet Şimşek emphasized in previous statements that it is crucial for Turkey to enact the crypto law to be removed from the gray list by the Financial Action Task Force (FATF).

Currently, there are minimal regulations for the crypto market in Turkey. Among these, the regulation banning the use of cryptocurrencies as a payment method by the Central Bank of the Republic of Turkey (CBRT) stands out. On the other hand, the Financial Crimes Investigation Board (MASAK) mandates customer identification (KYC) for crypto platforms operating in the country as part of anti-money laundering and counter-terrorism financing measures.

Turkey is positioned as an important market as one of the countries with the highest cryptocurrency transaction volumes worldwide. The emergence of details regarding the crypto bill that is expected to be on the parliament's agenda this week and the prospect of the bill becoming law could have a significant impact on the sector.

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