Mehmet Şimşek Explained: Here's the Roadmap for Cryptocurrency Regulations! - Coin Bulletin

Turkey is preparing a detailed and comprehensive regulation for the cryptocurrency asset ecosystem. Minister of Treasury and Finance, Mehmet Şimşek, stated that the regulations aim to increase investor security and market efficiency.

Turkey is preparing a comprehensive and detailed regulation to increase investor security, prevent crime financing, and provide financial instrument diversity in the cryptocurrency market. In parallel, it is stated that the secondary regulations for cryptocurrencies are nearing completion, while Mehmet Şimşek gave some signals regarding the roadmap.

On December 17th, the President of the Capital Markets Board, Ibrahim Ömer Gönül, announced that secondary regulations for cryptocurrencies will be implemented very soon.

Detailed Regulations and New Obligations

Turkey had established a legal framework for crypto assets with the amendment to the Capital Markets Law. Now, the Capital Markets Board is introducing more detailed principles regarding the sector with the secondary regulation drafts prepared by (SPK).

These drafts cover the establishment and operation principles, capital adequacy, and internal control mechanisms of crypto asset service providers. In addition, service providers are required to meet risk-based capital adequacy requirements, be subject to independent audit, and comply with principles and rules that will protect customer assets.

Speaking to Anadolu Agency, Minister Şimşek emphasized that the regulations are quite detailed and comprehensive compared to other countries and stated the following:

*An example of risk-based regulation related to capital is not included in the regulations of other country authorities. These steps we have taken will provide the opportunity for the market to operate effectively and for the formation of a trust environment for investors. We aimed to create a set of rules with clearly defined framework, which gives controlled obligations to crypto asset service providers and can be applied by market participants.

According to the drafts, a listing committee will be established for assets to be listed on crypto asset platforms. In addition, risky financial transactions such as leveraged transactions, derivative contracts, and margin trading will be prohibited as mentioned many times before. Platforms will be required to regularly report customer balance information by working in integration with the Central Securities Depository (CSD).

With these regulations, service providers will be required to operate only with the permission of the CMB and fulfill their financial, operational, and technical obligations. Şimşek also used the following statements:

With these regulations, investor transactions will be recorded, creating a safer environment for cryptocurrency transactions. In terms of our country's financial markets, we have introduced a new instrument to the markets in parallel with global markets in terms of financial instrument diversity and the development of the fintech ecosystem. We also expect these regulations to make a significant contribution in terms of preventing the financing of crime.

The Capital Markets Board (CMB), in its bulletin dated September 20, focused on expanding investor protection measures for cryptocurrencies, and added, "Borrowed crypto asset transactions and leveraged transactions cannot be made. It is mandatory to keep the keys of crypto assets not stored in customers' wallets on the platform."