Treasury and Finance Minister Mehmet Şimşek made notable statements, indicating that the technical work on legal regulation related to cryptocurrencies is in its final stage. Şimşek pointed out that, due to the increasing interest in cryptocurrency trading platforms in Turkey, it is an urgent need to regulate this area to reduce the risks, as has been done in many other countries.
Şimşek: Technical Work in Final Stage
Treasury and Finance Minister Mehmet Şimşek shared some details about the cryptocurrency law, which is expected to be presented to the Parliament soon, stating that the technical work on the legal regulation concerning cryptocurrencies has reached its final stage.
Emphasizing the increased interest in cryptocurrency trading platforms, especially during and after the pandemic, Şimşek highlighted the risks such as misuse and extreme price movements. He noted that there are different practices worldwide and stated that Turkey has adopted an approach in line with international standards for regulating cryptocurrencies, saying, “Our main goal with cryptocurrency regulation is to make this field safer and to eliminate potential risks. We also aim to pave the way for the development of Blockchain technology and the cryptocurrency ecosystem.”
Şimşek stated that in the law, cryptocurrencies are broadly defined, saying, “Cryptocurrencies are defined as intangible assets that are electronically created and stored using distributed ledger technology or similar technology, distributed over digital networks, and can represent value or rights. The aim was to create the most inclusive definition possible, considering that definitions within certain limits may not cover different cryptocurrencies that may emerge in the future.”
SPK to Be Granted Licensing Authority
Minister Şimşek pointed out that the Central Bank and MASAK have made some regulations for the field but more is needed. He emphasized that the main goal of the regulation concerning cryptocurrencies is to regulate crypto trading platforms and transactions, highlighting that SPK will be authorized to license crypto trading platforms.
Şimşek added that minimum operational requirements such as conditions related to founders and managers, organizational obligations, capital requirements, and information technology infrastructure obligations will be imposed, similar to financial institutions. He mentioned that the details of these operational conditions will be determined by secondary regulation.
On the other hand, Şimşek stated that there is no work on taxation in the regulation, indicating that at this stage, the regulation will not focus on taxation and that the issue will be studied separately.
