Turkey Introduces Comprehensive Regulations for Crypto Asset Service Providers

Turkey has taken a significant step in regulating the crypto asset market, introducing detailed rules to ensure market security and investor protection. With the Capital Markets Board (CMB) finalizing secondary regulations, the framework establishes stringent guidelines for crypto asset service providers, focusing on capital adequacy, audit mechanisms, and listing principles.

Key Features of the New Regulations

The regulations aim to strengthen the operational and financial integrity of crypto asset service providers through:

  • Capital Adequacy and Financial Stability: Minimum capital requirements and additional risk-based capital adequacy obligations will ensure the financial sustainability of service providers.
  • Internal Controls and Audit Systems: Providers must establish internal audit, internal control, and risk management units, alongside meeting independent audit requirements.
  • Custody and Transfer Rules: Principles for the secure storage and transfer of crypto assets have been clearly defined.
  • Operational Restrictions: Leveraged trading, derivative contracts, credit purchases, short sales, and lending transactions for crypto assets will be prohibited.
  • Listing and Delisting Guidelines: Platforms must establish listing committees to oversee decisions regarding the inclusion or removal of crypto assets.

Service providers will also need to integrate with the Central Registry Agency (CRA) to ensure transparency in customer balance information and comply with reporting obligations.

CMB Authorization and Compliance

All crypto asset service providers must obtain authorization from the CMB to operate. Existing providers must align their operations with the new legislation to maintain their licenses. The regulations also mandate providers to implement price surveillance systems for domestically traded crypto assets, aiming to prevent market manipulation and ensure investor confidence.

A Global Perspective

Turkey’s efforts align with the global trend of regulating crypto markets. The EU’s Crypto Asset Markets Regulation (MiCA), expected to take full effect by 2026, and similar initiatives in the UK, Japan, and Singapore reflect a shared emphasis on investor protection and market stability.

Mehmet Şimşek, Minister of Treasury and Finance, highlighted that Turkey’s regulations stand out due to their inclusivity and detail, particularly in introducing risk-based capital requirements, which are absent in many other countries’ frameworks.

“These steps will allow the market to function effectively and create an environment of trust in the eyes of investors,” Şimşek stated.

Implications for the Market

Turkey’s regulatory framework marks a pivotal moment for the nation’s crypto ecosystem, setting a robust foundation for growth while prioritizing investor protection and market transparency. With these measures, Turkey positions itself as a leading player in shaping the global crypto regulatory landscape.

The draft communiqués are expected to be published soon, ushering in a new era for Turkey’s burgeoning crypto market.

 

 

 

Source: kaynak.com

Translation: Cem Cetinguc

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