Turkey has recently introduced significant changes to its crypto regulations, marking a major shift in how digital assets are managed within the country.
The Capital Markets Board (CMB) now has full oversight of crypto asset service providers (CASPs), including exchanges, custodians, and wallet service providers.
The CMB is responsible for licensing, operations, and compliance of CASPs, ensuring they adhere to national and international standards.
CASPs must invest in robust compliance infrastructure, including systems for Know Your Customer (KYC) verification and Anti-Money Laundering (AML) monitoring.
Stricter reporting obligations require CASPs to provide timely information about their operations to the CMB.
Regulations aim to enhance financial stability by ensuring platforms are financially stable and adhere to strict risk management practices. This includes maintaining separate bank accounts for user funds and conducting proof-of-reserve audits.
The regulations align with international frameworks like Europe's Markets in Crypto-Assets Regulation (MiCA) and the US Securities and Exchange Commission guidelines.
Mandatory identity verification for transactions over 15,000 Turkish lira and strict checks on unregistered wallets are part of Turkey's broader AML efforts.
The new framework is expected to boost investor confidence by providing a clear and secure regulatory environment.
The stringent requirements may pose challenges for smaller startups, potentially limiting innovation in the industry.
Aligning with international standards could facilitate cross-border crypto activities and enhance Turkey's position in the global financial arena.
These regulations mark a significant step towards creating a more structured and secure crypto market in Turkey, emphasizing compliance, risk management, and investor protection.
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