Turkey’s Finance Minister Mehmet Şimşek announced that the country is in the final stages of technical work for a new cryptocurrency legislation, highlighting the urgent need for regulation due to the increased interest in cryptocurrency trading platforms in Turkey. The aim is to mitigate risks associated with the sector, similar to other countries.
Şimşek emphasized the growth in cryptocurrency platform usage during and after the pandemic, noting the potential for misuse and extreme price volatility. He stated that the upcoming regulation aims to make the cryptocurrency space safer and to address emerging risks, while also fostering the development of blockchain technology and the cryptocurrency ecosystem.
The legislation broadly defines cryptocurrencies and includes definitions for crypto wallets, service providers, storage services, and trading platforms, ensuring compatibility with international regulations. The definition of cryptocurrency is designed to be comprehensive to accommodate future digital assets.
Şimşek mentioned that the Capital Markets Board (SPK) will be authorized to license cryptocurrency trading platforms. The regulation’s primary goal is to oversee these platforms and transactions.
The new rules will impose minimum operational requirements on cryptocurrency platforms, similar to financial institutions. These include conditions for founders and executives, organizational obligations, capital requirements, and IT infrastructure. The specifics of these requirements will be determined through secondary legislation.