New Turkish Crypto Law 2024 is on the way. It is critical to underline at the outset that Turkey is one of the largest blockchain users across the world.
Financial technologies environment has improved very quickly over the last 20 years. This development causes enormous challenges to national and international policy and law makers. This paper will give a brief outline of recent preparations for new Turkish Crypto Law 2024. At the beginning, it is useful to remember what the meaning of FinTech is.
For a comprehensive discussion on the FinTech Environment in Turkey, take a look at our article on FinTech Guide in Turkey
What is the meaning of FinTech?
The term “FinTech” describes emerging electronic payment methodologies based on the automation and facilitation of payment systems. Indeed FinTech contains a broad range of payment models such as electronic money institutions, payment institutions, digital banks, online insurance agencies, and crowdfunding platforms and blockchain such as crypto currencies. What is really important is that the FinTech environment is mostly dedicated to the development of faster and better delivery of financial services.
For our work and all legal services on the matter of financial technologies, please click our “Practice Areas”, titled, FinTech
For more discussion for banking and finance, take a look at our article on Banking and Finance Law in Turkey
What is the main role of FinTech ecosystem?
The main intention of financial technologies market is to facilitate shopping and trade. There are several advantages of alternative virtual payment instruments. Financial technologies provide numerous tools for individuals.
What is the news on new Turkish Crypto Law 2024?
The draft bill on Turkish Crypto Law 2024 came to the Grand National Assembly of Turkey. Draft on New Turkish Crypto Law 2024 was introduced by Mehmet Şimşek, the Ministry of Treasury and Finance to the Parliament agenda. That step is of utmost importance in the development of the digital era in Turkey. It should be remembered that the previous step for digital technologies was to recognize digital wallets by means of new regulation of the Central Bank of the Republic of Türkiye.
For more observation about digital wallet regulation, take a look at our article on Digital Wallet Era in Turkey
What is the importance of the draft bill on new Turkish Crypto Law 2024?
Main intention of the draft on New Turkish Crypto Law is to provide a compliance of the capital markets system in line with the Financial Task Force standards and principles aiming at the prevention of money laundering and terrorist financing. It is firstly intended to formulate core standards for the definition of crypto asset, crypto asset exchange platform, crypto assets service providers. Secondly, legal obligations will be placed for the certification and licensing of crypto currency service providers. In this context, Central Bank of Republic of Türkiye will be authorized for granting licensing for the establishment and operation. Thirdly, the relevant crypto asset is subject to an approval process by the Scientific and Technological Research Council of Türkiye (TÜBİTAK).
It would be a little earlier now to make comments on the potential results of the Law. Because it is beyond easy to imagine to what extent all articles in draft will be finalized and adopted by the Parliament. Because Parliament has a direct power to make comprehensive changes and|or rejection of the draft bill completely. Nevertheless, considering that the fundamental objective of policy makers from the draft is to introduce certification and|or licensing and the approval of blockchain instruments in Turkey. In this way, crypto assets will be regarded and recognized as capital markets instruments as well.