Turkish regulators have rolled out stricter rules for crypto platforms and have placed tighter controls on exchanges, custodians, and wallet providers under its Capital Markets Board (CMB).
Unveiled on March 13, the new regulations are the CMB’s latest effort to establish a clear framework for crypto asset service providers (CASPs).
The framework positions the agency as the primary watchdog for the country’s crypto sector, giving it full oversight to enforce compliance with both local and international standards.
Stricter oversight of the crypto sector
According to two separate regulatory documents published, affected entities include crypto exchanges, custodians, and wallet service providers, all of which must meet new licensing, capital, and operational requirements to continue operating legally in Turkey.
Some of the key mandates introduced include minimum capital requirements—$4.1 million for exchanges and $13.7 million for custodians—along with strict compliance and risk management protocols.
However, the minimum requirements are exempt for fixed assets, receivables, and available-for-sale financial assets.
CASPs will be required to implement price monitoring systems to detect suspicious trading activity and provide timely reports to regulators.
Additionally, the rules reinforce Anti-Money Laundering measures, requiring firms to log detailed transaction records, including cancelled and unexecuted trades.
The document also mandates proof of reserves audits and the implementation of document recording systems for better regulatory oversight.
Crypto entities must also follow strict guidelines when it comes to leadership and ownership.
Company executives are required to have a clean track record, while shareholders need to meet specific criteria to qualify.
With this, the CMB expects to prevent bad actors from running crypto businesses, ensuring a more secure and transparent industry.
The rules are set to take effect gradually, with most requirements enforced by June 30, 2025, and full implementation by the end of the year.
ICOs and security tokens
Crypto exchanges are also allowed to conduct initial coin offerings, provided they review the relevant smart contracts and ensure compliance with listing criteria.
However, the framework remains vague on security tokens, as it does not explicitly define them or outline a separate regulatory path.
The issuance of security tokens is not prohibited, but the lack of clarity leaves some regulatory uncertainty in this area.
According to the CMB, Turkey’s new regulations bring its crypto policies in line with global standards, taking cues from Europe’s Markets in Crypto-Assets Regulation (MiCA) and frameworks used by the US Securities and Exchange Commission.
Turkey’s thriving crypto market
The new regulations come only months after the country enforced stricter AML measures and client identification policies for transactions that surpassed 15,000 Turkish Lira.
Meanwhile, businesses have been increasingly drawn to Turkey’s crypto sector, with several notable partnerships and investments emerging in recent months.
As previously covered on Invezz, on January 14, decentralized oracle network Chainlink partnered with local digital asset-as-a-service firm BTguru to integrate its interoperability protocol, data feeds, and proof-of-reserve technology into BTguru’s digital asset solutions.
More recently, BankPozitif, a digital bank in Turkey, partnered with Taurus to provide crypto custody services for institutional clients.
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