Turkey Introduces New Crypto Regulations for CASPs, Aligns with Global Standards

Turkey has taken significant steps to enhance its cryptocurrency regulations by introducing new rules for crypto asset service providers (CASPs). On March 13, the Capital Markets Board (CMB) of Turkey published two regulatory documents that outline the licensing and operational requirements for CASPs, which include crypto exchanges, custodians, and wallet service providers.

The new framework grants the CMB comprehensive oversight of crypto platforms, ensuring that they comply with both national and international standards. This move is aimed at establishing a robust regulatory environment that can effectively monitor and manage the activities of CASPs within the country. The regulations set forth clear standards and requirements for the establishment and provision of crypto asset services, including specifications on establishment capital, the background of executives, and shareholder rules.

Under the new regulations, CASPs will be required to invest in compliance infrastructure, which may pose challenges as they adapt to the stringent regulatory environment. Additionally, CASPs will need to adhere to rigorous reporting requirements, providing the CMB with timely and accurate information about their operations. This level of oversight is designed to ensure transparency and accountability within the crypto industry.

The regulations align with global standards and follow regulatory approaches set by Europe’s Markets in Crypto-Assets Regulation (MiCA) and the US Securities and Exchange Commission. This alignment indicates Turkey's commitment to integrating its crypto regulations with international best practices, thereby fostering a more stable and secure crypto market.

Furthermore, the new rules target stricter trading requirements for Turkish investors, introduce potential restrictions on stablecoins, and address the decentralized finance (DeFi) market in Turkey. These measures are intended to protect investors and ensure the integrity of the crypto market, while also promoting innovation and growth within the sector.