The Turkish Minister of Treasury and Finance, Mehmet Şimşek, has provided insights into the forthcoming cryptocurrency regulations in Turkey. The government’s plan involves legally defining key concepts in the cryptocurrency space, licensing trading platforms, and aligning with the standards set by the Financial Action Task Force (FATF).
In an interview with the Anadolu Agency on January 10, Şimşek confirmed that the framework for regulating cryptocurrencies in the Turkish market is in its final stages of development, with a focus on evaluating the technical implementation aspects. The minister underscored the government’s commitment to mitigating the risks associated with cryptocurrency trading for ordinary investors, in line with international standards:
“As a result, we are taking measures to reduce the risks associated with cryptocurrency trading in our country, following international practices. This is also in line with FATF requirements to exit the gray list.”
The new regulations will mandate that cryptocurrency platforms obtain licenses from Turkey’s Capital Markets Board (CMB). They will also provide legal definitions for terms such as “crypto assets,” “crypto wallets,” “crypto asset service providers,” “crypto asset custody services,” and “crypto asset buying and selling platforms.” As an example, Şimşek offered a definition for crypto assets:
“[…] intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology, distributed over digital networks, and capable of expressing value or rights.”
Şimşek clarified that the regulations will not address the specific tax treatment of virtual assets. Turkish authorities have been deliberating cryptocurrency regulations for some time, with a particular focus on licensing and taxation to remove Turkey from the FATF’s “gray list.” According to blockchain analytics firm Chainalysis, between July 2022 and June 2023, Turkey ranked fourth globally in terms of raw cryptocurrency transaction volumes, with approximately $170 billion in activity, trailing only the United States, India, and the United Kingdom.
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