Turkey Implements Comprehensive Cryptocurrency Regulations for Service Providers

According to Cointelegraph, Turkey is moving forward with its cryptocurrency regulations by introducing new rules for crypto asset service providers (CASPs). On March 13, the Capital Markets Board (CMB) of Türkiye released two regulatory documents outlining the licensing and operational guidelines for CASPs, which include crypto exchanges, custodians, and wallet service providers. The newly established framework grants the CMB comprehensive oversight over crypto platforms, ensuring they comply with both national and international standards. It sets forth specific criteria and requirements for the establishment and operation of crypto asset services in Turkey, covering aspects such as establishment capital, executive history, shareholder regulations, and more. Under this framework, CASPs will be required to invest in compliance infrastructure, which may pose challenges as they adapt to the new regulatory environment. Additionally, CASPs must adhere to stringent reporting requirements, providing the CMB with timely and accurate information regarding their operations. The regulatory documents indicate that Turkey's new crypto regulations are aligned with global standards, following the regulatory approaches established by Europe's Markets in Crypto-Assets Regulation (MiCA) and the U.S. Securities and Exchange Commission. The regulations also aim to enforce stricter trading requirements for Turkish investors, introduce potential restrictions on stablecoins, and address the decentralized finance (DeFi) market within Turkey. This is an evolving situation, and further updates will be provided as more information becomes available.