Turkey is making progress on its cryptocurrency regulations by introducing new guidelines for crypto asset service providers (CASPs).
On March 13, Türkiye’s Capital Markets Board (CMB) issued two regulatory documents concerning the licensing and functioning of CASPs, which include crypto exchanges, custodial services, and wallet providers.
This framework empowers the CMB with comprehensive oversight of cryptocurrency platforms, ensuring they comply with both national and international standards.
Additionally, it establishes criteria for setting up and operating crypto asset services in Turkey, encompassing requirements related to initial capital, the background of executives, and shareholder rules, among others.
### Enhanced Standards for CASPs
Under these regulations, CASPs must invest in compliance infrastructure, which could pose challenges as they adapt to the new regulatory landscape. They will also be subject to strict reporting obligations, needing to provide the CMB with accurate and timely updates on their operations.
The new regulations position Turkey’s crypto framework in line with global standards, taking cues from the regulatory guidelines established by Europe’s Markets in Crypto-Assets Regulation (MiCA) and the US Securities and Exchange Commission.
Moreover, these regulations aim to impose stricter trading requirements for Turkish investors, potentially set forth restrictions on stablecoins, and address the decentralized finance (DeFi) sector within Turkey.
This is a developing situation, and updates will be provided as new information emerges.