Minister Mehmet Şimşek explains the details! Final stage reached in crypto asset regulation

Minister of Treasury and Finance Mehmet Şimşek stated that the legal regulation for crypto assets has reached its final stage.

Şimşek announced, "Crypto asset trading platforms will be licensed by the CMB (Capital Markets Board), and minimum operating requirements will be introduced, similar to those for financial institutions."

"PRIMARY GOAL IS TO MAKE IT SAFER"

In his assessment regarding the regulation of crypto assets, Minister Şimşek said, "Our primary goal with the crypto asset regulation is to make this area safer and to eliminate potential risks."

Speaking on the increased interest in crypto assets during and after the pandemic, Şimşek emphasized that the regulation aims to reduce the risks for parties involved in crypto asset transactions, similar to international practices. Şimşek stated that despite different practices around the world, similar steps need to be taken in our country as well.

"MINIMUM OPERATING REQUIREMENTS WILL BE MANDATED"

The Minister stated that the main objective of the crypto asset regulation is to bring platforms and the transactions occurring on them under regulation, adding, "Crypto asset trading platforms will be licensed by the CMB, and minimum operating requirements will be mandated, similar to those for financial institutions." Şimşek added that the details of the regulations will be determined through secondary legislation.

Commenting on the issuance of crypto assets, Şimşek noted that the draft grants the CMB the authority to authorize the issuance of capital market instruments as crypto assets. He also stated that individuals developing blockchain technologies will be provided with the opportunity to sell their crypto assets through crowdfunding methods.

Emphasizing that the regulation is not tax-focused, Şimşek said that written procedures will be established for determining the crypto assets to be traded on platforms and that the CMB will have the authority to intervene when necessary. He also noted that the issue of custody is being regulated to protect against the risk of investor assets being abused.

Providing information on whether the regulation will contribute to Turkey's removal from the FATF grey list, Şimşek said, "With the enactment of our crypto asset regulation draft, it is assessed that we will address the criticisms brought under FATF's technical standard No. 15 and move out of the 'partially compliant' category."

The Minister noted that the primary objectives of the regulation are to make the crypto asset space safer, eliminate risks, remove uncertainties, and encourage the development of blockchain technology and the crypto asset ecosystem.