Turkish President Tayyip Erdogan’s ruling party proposed a crypto regulation that highlights licensing and registration obligations for crypto asset service providers.
The long-term wait of Turkey was finally over as Turkish President Tayyip Erdogan’s ruling party introduced new crypto regulations on Tuesday. As per the new draft regulations, it would be mandatory for all cryptocurrency service providers and companies to achieve a license from Turkey’s Capital Markets Board.
New Crypto Bill Insights
On May 16, Tayyip Erdogan’s ruling party introduced a new crypto bill that discusses licensing and registration obligations. Improving the country’s reputation in the crypto space as well as with the Financial Action Task Force (FATF) global financial watchdog are some major reasons behind the same.
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The new rules state what crypto companies must do and how they must manage their finances and operations. The proposed law aims to oversee companies that handle cryptocurrencies, including how they store and trade these digital assets.
Additionally, the law would give the Capital Markets Board the power to enforce more detailed rules and procedures for cryptocurrency companies.
Turkey’s Long-Term Planning for Crypto Regulations
This move comes after Turkey has been crafting laws for over two years to oversee the crypto market and protect people.
It all started in October 2021 when FATF gray-listed Turkey for failing to manage its banking, real estate, and other business sectors from money-laundering issues. All the gray-listed countries are closely monitored by FATF and are required to correct deficiencies.
To improve relations with FATF and enhance financial security, Turkey introduced the new crypto bill. On May 13, the final preparations for the crypto regulations were finished by the AK Party’s chairperson.
Turkey’s Standing in Crypto Industry
Turkey holds a strong standing in the world in terms of the level of acceptance and usage of digital assets.
According to Statista, in 2022, Turkey’s revenue in the cryptocurrency market was recorded at $46.3 Million and is projected to hit $139.2 Million by 2024 end.
Turkey’s cryptocurrency revenue I Source: Statista
The gradual increase in revenues indicates enhanced interest in Turkey towards digital assets and related services. Furthermore, the United States and the United Kingdom are the top players on the list.
The upcoming crypto rules will safeguard the cryptocurrency users in Turkey along with fostering innovation.
