Turkey proposes to align crypto legislation with international standards.
Turkey's ruling party submitted a draft crypto bill to parliament on May 16. The bill focuses on licensing and registration of crypto service providers and aligns with international standards.
According to a Reuters report, the bill aims to reform existing laws to fully regulate the nascent cryptocurrency market. Key areas of focus of the bill include consumer protection, platform transparency and compliance with financial regulations.
The proposed law plans to regulate cryptocurrency trading platforms and other service providers in the sector, requiring them to obtain a license from the Turkish Capital Markets Commission.
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The draft law aims to regulate crypto asset service providers, crypto asset platform operations, crypto asset storage, and crypto asset buying, selling, and transfer that Turkish residents can perform. The law also addresses the classification of cryptocurrencies and projects, ensuring compliance with existing financial regulations. Some key taken from the account
Crypto service providers must be licensed and regulated by the Capital Markets Board (SPK). In order to protect consumer assets and effectively resolve disputes, SPK's supervision has improved mandatory revenue collection from crypto service providers by SPK and TÜBİTAK. It is prohibited to promote foreign crypto brokers. A domestically controlled ecosystem. This move seeks to align Turkey with international standards and address FATF's concerns, increasing the security and reliability of the national crypto market.
The bill proposes to include Financial Action Task Force (FATF)-issued travel guidelines. The FATF Travel Guide requires virtual asset sales and cryptocurrency companies, collectively known as VASPs, to obtain “accurate originator information and user information” from financial institutions and share it with associated VASPs or other financial institutions before or during transactions.
Turkey will be downgraded to a “grey list” by the FATF in October 2021 for failing to implement anti-money laundering measures in banking, real estate and other industries vulnerable to money laundering. The FATF requires countries on the gray list to proactively cooperate in correcting weaknesses and undergo greater scrutiny.
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