The governing party of Turkey has recently submitted a draft bill to parliament, focusing on the registration and licensing of crypto service providers. This bill aligns with global standards and aims to make the Capital Markets Board (CMB) the primary authority for licensing crypto trading platforms and related service providers in Turkey.
The proposed legislation seeks to enhance the regulation of the cryptocurrency industry, ensuring consumer protection, increased transparency of platforms, and compliance with financial laws. It covers various aspects of crypto asset service providers, including platform operations, storage, and transactions involving the buying, selling, and transferring of crypto assets by Turkish residents.
In addition, the bill addresses the categorization of cryptocurrencies and projects, incorporating the Travel Guidelines provided by the Financial Action Task Force (FATF). The FATF Travel Rule requires financial institutions and cryptocurrency companies involved in digital asset sales (referred to as VASPs) to obtain and share accurate originator and beneficiary information with other financial institutions or counterparties during or prior to transactions.
Turkey was placed on the FATF’s gray list in October 2021 due to deficiencies in its Anti-Money Laundering procedures within its banking, real estate, and other sectors. Being on the gray list subjects countries to increased scrutiny and necessitates collaborative efforts to address any shortcomings.
In other news, Hong Kong has recently announced the launch of an e-CNY wallet for local users.