Turkey’s financial regulator introduced new standards for the operation of crypto-asset service providers (CASP) in the country. This initiative aims to ensure transparency, protect investors, and integrate digital assets into the financial system.
The Capital Markets Board of Turkey (CMB) published two documents that will serve as the foundation for regulating the crypto market in the country. The initiative is designed to create a clear regulatory framework to foster industry development while maintaining security and user protection requirements.
According to an official publication from the CMB, the new regulatory measures for Turkey’s cryptocurrency industry include:
- Licensing. All crypto exchanges and platforms operating in Turkey are required to obtain a CMB license.
- Anti-money laundering (AML) and counter-terrorism financing (CFT) measures. Companies must implement AML and CFT procedures, including Know Your Customer (KYC) identification and monitoring suspicious transactions.
- Investor protection. Standards are established to ensure transaction transparency and protect investors’ interests, including mandatory disclosure of risks associated with cryptocurrency investments.
- Capital and reserves requirements. Crypto companies must be established as joint-stock companies with a minimum share capital of 50 million Turkish lira (~$1.4 million).
- Reporting and auditing. Regular financial reporting and independent auditing requirements are introduced to ensure transparency and trust in the operations of crypto companies.
- Penalties for violations. Operating without a license in Turkey can result in fines ranging from $7,500 to $182,600, as well as prison sentences of three to five years for individuals.
These measures are expected to legalize crypto companies in Turkey and build trust with traditional finance (TradFi) participants. Additional requirements for crypto companies will help reduce fraud risks and increase transaction transparency. This initiative is also seen as laying the groundwork for institutional adoption of cryptocurrencies in Turkey, where demand is already strong.
Turkey’s financial regulator began developing the crypto services provider bill at the end of 2023.
