Preparations for a new law regulating cryptocurrency assets in Türkiye, aiming to mitigate risks associated with cryptocurrency transactions and align with international standards are considered complete, according to a report Saturday.
Ruling Development and Justice Party (AK Party) Group Chairperson Abdullah Güler chaired a meeting to finalize preparations for a draft law containing regulations on cryptocurrency assets, indicated a report from Anadolu Agency (AA).
The draft is planned to be submitted to Parliament within the week.
The draft aims to reduce the risks of parties dealing with cryptocurrency assets in Türkiye, similar to international practices.
The regulation which is set to regulate cryptocurrency assets broadly, targets licensing the platforms where they are traded by the Capital Markets Board (SPK) and bringing them under the regulation and supervision of the SPK.
The proposal would also include provisions regarding the custody of cash and cryptocurrency assets held on behalf of customers on the platforms, the relationships between platforms and customers, as well as the sanctions and penalties to be applied.
Criteria for the operation principles of the platforms, however, would be determined through secondary regulation.
Treasury and Finance Minister Mehmet Şimşek announced earlier this year they had reached the final phase in the technical studies of the legal regulations regarding cryptocurrency assets, seeking to mitigate risks and regulate trading platforms and transactions.
The regulations are expected to bring licensing and operating standards to trading platforms as well as help the country to be taken off an international financial crime watchdog "gray list," he said at the time.
The draft law on cryptocurrency assets is set to include provisions authorizing the Capital Markets Board to grant permission and impose conditions for the sale or distribution of cryptocurrency assets whose value cannot be separated from the blockchain and similar technologies developed by individuals.
The regulation aims to involve the Scientific and Technological Research Council of Türkiye (TÜBITAK) in this process to encourage software architecture development for blockchain and related technological tools.
Upon the enactment of the regulation on cryptocurrency assets and the start of licensing for cryptocurrency asset service providers, criticisms brought under the Financial Action Task Force (FATF) Technical Standard No. 15 are expected to be addressed, and Türkiye is envisaged to eventually move out of the "partially compliant" category.