Turkey Tightens Crypto Regulations: CMB Gains Full Control Over Digital Assets

The Capital Markets Board (CMB) in Turkey has taken complete control over crypto asset service providers (CASP) in an effort to regulate the fast-growing crypto market. The CMB recently published two regulatory documents outlining the establishment and operating principles of CASPs, including crypto exchanges, custodians, and wallet service providers, enabling them to continue operations in the country.

Key provisions of the new regulations align Turkey’s crypto regulations with international standards. CASPs are now required to maintain minimum capital reserves, have specialized risk management teams, set up price monitoring systems, and adhere to rigorous reporting obligations. Derivative transactions involving cryptocurrencies are prohibited, while ICOs are allowed as long as they follow specific guidelines.

These regulatory changes are part of Turkey’s efforts to comply with international standards set by organizations like the Financial Action Task Force (FATF). By implementing these guidelines, Turkey aims to protect investors from fraudulent activities, reduce market volatility, and attract institutional investments for sustainable growth in the crypto industry.

Overall, the response to these new regulations in the Turkish crypto market has been mixed, with some stakeholders expressing concerns about increased operational costs and compliance requirements, while others see long-term benefits in having transparent regulations in place.