Turkey Tables Crypto Bill in Parliament, Aims to Bring Crypto Licensing to the Country

As a researcher with a background in financial regulation and experience working in emerging markets, I believe that this legislative proposal is a positive step towards increasing transparency and reducing risks associated with crypto assets in Türkiye. The introduction of a licensing scheme for crypto firms under the supervision of the Capital Markets Board (CMB) is an essential move to bring these entities under regulatory oversight and protect consumers from potential harm.

Turkey has put forth a legislative plan to minimize potential hazards for parties dealing with cryptocurrencies within its borders. This proposal was submitted to the parliament for consideration.

A bill put forward by Abdullah Güler, the ruling party chairman, contains provisions pertaining to crypto assets. The Capital Markets Board (CMB) will enforce this legislation. This proposal significantly strengthens the regulatory framework for crypto service providers and expands the CMB’s oversight of their activities.

The proposed legislation seeks to establish a licensing framework for cryptocurrency companies, overseen by the CMB, thereby subjecting these firms to regulatory oversight. To safeguard consumers, the authority’s power to inspect crypto service providers will be broadened.

The bill does not include any specifications for crypto taxation, yet the CMB and TÜBİTAK institutions will secure a percentage of the income generated by crypto service providers. Specifically, they will receive 1% of these earnings. The Scientific and Technological Research Institution of Türkiye (TÜBİTAK) serves as a national agency dedicated to advancing “science, technology, and innovation” initiatives in Turkey. They are responsible for shaping policies, offering support, and conducting R&D in this domain.

The passage of this bill aims to enhance Türkiye’s adherence to global regulations concerning crypto assets, silence criticisms from the Financial Action Task Force (FATF), and bolster the security of the country’s crypto market.

In March, Mehmet Şimşek, the economy minister of the country, disclosed to the public the government’s initiatives to exit the FATF gray list. He announced that a delegation from FATF (Financial Action Task Force) is expected to visit Turkey in April or May for an inspection. Furthermore, he expressed optimism that Turkey would be taken off the gray list following this assessment.

In March, Ömer İleri, the Deputy Chairman of Information and Communication Technologies for the ruling AK Party, emphasized the significance of conducting a legal analysis regarding crypto assets. This regulatory effort is mainly focused on governing the related platforms. However, it also aims to safeguard our citizens and investors beyond that scope.

As a researcher, I would recommend revising the statement to read: “I. Remove reference to the bill specifically targeting firms without local origin.” This change maintains the first-person perspective while providing a clear and natural paraphrase of the original instruction.