Turkey has introduced a set of comprehensive reforms to its cryptocurrency regulations, designating the Capital Markets Board (CMB) as the primary regulatory authority over digital assets. This move aims to bolster investor protection by implementing stringent requirements for Crypto Asset Service Providers (CASPs), including the need for insurance on digital assets held.
Under these new guidelines, CASPs are required to demonstrate financial robustness and comply with clear legal standards to obtain licensure from the CMB. The regulations mandate all initial capital to be fully paid in cash and meet a specified minimum set by the CMB, highlighting a focus on financial security.
The CMB has been equipped with enhanced powers to enforce these regulations effectively, including the capacity to revoke licenses and enforce sanctions on entities failing to adhere to the rules. This tightening of regulatory oversight seeks to discourage malpractice in the sector and align with international legal standards.
This regulatory overhaul also reflects Turkey’s efforts to address the Financial Action Task Force’s (FATF) concerns regarding money laundering and terrorism financing, aiming to improve its standing on the global stage. By strengthening the regulatory framework around cryptocurrencies, Turkey is taking significant steps towards creating a safer and more transparent digital asset market, fostering innovation while ensuring robust investor protection.
