Turkey Rolls Out New Crypto Regulations with CMB Oversight

Turkey has introduced new cryptocurrency regulations, placing the Capital Markets Board (CMB) in charge of overseeing digital asset platforms. The new framework sets operational requirements for crypto asset service providers (CASPs) and mandates insurance for user-held assets.

The regulations follow a push by Turkish authorities to strengthen oversight of the crypto industry. Over a year ago, Finance Minister Mehmet Simsek confirmed that the CMB would regulate the sector, aligning with conditions set by the Financial Action Task Force (FATF) for Turkey’s removal from its gray list.

Before these changes, the lack of clear laws made it difficult to track crypto transactions, creating opportunities for financial crimes. Authorities pointed to gaps in oversight that allowed money laundering and illicit funding through digital assets.

Under the new legal framework, individuals looking to operate as CASPs must meet strict criteria, including financial stability and a clean legal record. The CMB has the authority to reject applications that fail to meet these conditions. Additionally, all CASPs must comply with capital requirements, ensuring they maintain fully paid-in cash reserves at levels set by regulators.

According to the Communiqué, “The establishment capital must not be less than the amount to be determined by the Board, provided that it is not less than the minimum capital amount foreseen in accordance with the Board’s regulations regarding the capital adequacy of crypto asset service providers, its entire capital must be paid in cash and its equity capital must not be less than this amount.”

The CMB also has the power to enforce penalties on non-compliant operators. Violations could lead to license revocation or the removal of individuals from positions within CASPs. These steps aim to enhance security in Turkey’s growing crypto market while ensuring platforms operate within a regulated framework.