Minister of Treasury and Finance Mehmet Şimşek evaluated the latest developments regarding the legal regulations regarding crypto assets. In his statement to Anadolu Agency, Şimşek stated that the technical studies of the regulation that will determine the legal framework of these digital assets have reached the final stage.
Firstly, addressing the increasing interest shown in crypto asset trading platforms during and after the epidemic period, Şimşek pointed out various risks due to the abuses and extreme price movements brought about by this interest. In this context, Şimşek stated that a regulation similar to international practices should be made in the country and announced that steps will be taken to reduce the risks of parties engaged in digital asset transactions.
Şimşek said in his statement: “Therefore, we are taking steps to reduce the risks of parties transacting with crypto assets in our country, similar to international practices. “This is also one of the steps we need to take within the scope of FATF to get out of the gray list.” said.
In addition, Şimşek also explained that the Central Bank and MASAK have already made regulations on this issue:
“With these regulations, we have gained the opportunity to have information on issues such as transactions and transfers taking place on the platforms, but of course we need to do more than that.”
In a period when the legal and financial status of crypto assets around the world varies, it is of great importance how countries approach this issue. Şimşek stated that they follow the developments in the international arena closely and cautiously and said, “When we look at foreign practices at this stage, we see that countries are progressing by adopting approaches appropriate to their own financial and legal systems regarding crypto assets. In this sense, it becomes clear that regulatory steps need to be taken in our country as well.” He made an evaluation as follows.
Determining the legal framework of crypto assets is of great importance for the security and transparency of the financial system. Turkey’s taking steps in this regard may contribute to the adoption of a harmonious approach at the global level. On the other hand, one of the most important issues among the concerns of investors in Turkey regarding crypto trading is tax regulations.
Minister Şimşek stated that tax policies will not be taken into the center during the regulation process and emphasized that the issue will be discussed in detail. He also pointed out that many crypto assets are currently traded on platforms and explained that they have adopted a policy of not interfering with crypto assets to be listed on the platforms:
“The CMB has been given the authority to regulate additional principles and principles in order to intervene when necessary in this regard. The draft also took into account the issue of preserving investors’ assets against the risk of misuse. Regulations will be made by the CMB regarding the principles of storage and the determination of institutions that can carry out storage. “In addition, we determine the general framework for measures and sanctions.”
Şimşek stated that the main goal of the legal work is to regulate the platforms and the transactions taking place there. He also added that the Capital Markets Board (CMB) will be given authority regarding crypto exchanges:
“Crypto asset trading platforms will be licensed by the CMB, and minimum operating conditions will be required, similar to financial institutions. These will be in the form of conditions for founders and managers, organizational obligations, capital requirements, and IT infrastructure obligations. Details of activity conditions will be determined by secondary regulation. Of course, while making these arrangements, it is necessary to make some definitions. Definitions of crypto asset, wallet, crypto asset service provider, crypto asset custody service and crypto asset trading platform were included in compliance with international regulations. In our draft, crypto assets are defined in broad terms. Accordingly, crypto assets were defined as ‘intangible assets that can be created and stored electronically using distributed ledger technology or similar technology, distributed over digital networks, and capable of expressing value or rights’. Considering that definitions within certain limits may not cover different crypto assets that may arise in the future, it was aimed to create the definition in the most comprehensive way.”
Finally, Minister Şimşek also explained the basic lines of the new draft regulation. This draft includes important regulations that will enable the issuance of crypto assets as crypto assets instead of the registered system in the Central Registry Agency. According to Şimşek, the Capital Markets Board (CMB) will be given authority on the issue. This step will allow crypto assets to be included in capital markets independently of the traditional financial system. At the same time, an important step is being taken for developers of blockchain and similar technologies. The authority to sell crypto assets, which constitute the blockchain technology infrastructure, whose value cannot be separated from these technologies, will be granted through crowdfunding method.
“The CMB will be authorized to make regulations that will allow the issuance of capital market instruments as crypto assets instead of the registered system in the Central Registry Agency (MKK). “Regulatory authority will be given to people who develop blockchain and similar technologies to sell crypto assets that form the blockchain technology infrastructure, whose value cannot be separated from these technologies, through crowdfunding.”
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