Turkey has given its Capital Markets Board (CMB) complete control over the crypto asset service providers (CASP) in an attempt to control its fast-growing crypto market.
On 13 March 2025, the nation saw the CMB publish two regulatory documents concerning ‘Establishment and Operating Principles of Crypto Asset Service Providers’ and ‘Working Procedures and Principles of Crypto Asset Service Providers and Capital Adequacy. ’
These licensing and operational guidelines for CASPs, which include crypto exchanges, custodians and wallet service providers, enable them to keep running operations in the country.
JUST IN: Turkey has strengthened crypto regulations, granting the Capital Markets Board full oversight of exchanges and imposing stricter compliance requirements on investors. pic.twitter.com/CSa2TJizUf
— FinNews (@FinNews_) March 14, 2025
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Key Provisions Aligning Turkey’s Crypto Regulations with International Standards
The recently created structure requires rigorous adherence to both national and international compliance criteria.
The legal operation of crypto exchanges now require a minimum capital of roughly $4.1 million, while custodians must hold at least $13.7 million. This capital requirement notably excludes fixed assets, receivables, and available-for-sale financial assets, stressing the need for liquid capital reserves.
The Communique states, “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.”
CASP requirements mandate significant investments in infrastructure supporting compliance. This includes setting up specialised risk management teams that can spot and reduce potential hazards present in crypto activities. Platforms also have to set up price monitoring systems meant to find and notify authorities of dubious trading activity.
The guidelines mandate CASPs to undertake rigorous reporting obligations. Platforms have to provide the CMB with accurate and thorough information on their operations, guaranteeing transparency and regulatory oversight. This covers recording comprehensive transaction data including cancelled and unexecuted transactions, improving Turkey’s anti-money laundering (AML) procedures.
The CMB has specifically forbidden derivative transactions involving cryptocurrencies in an attempt to reduce speculative trading and possible market manipulation. On the other hand, exchanges can make initial coin offerings (ICOs) as long as they carefully go over the related smart contracts and follow accepted listing guidelines.
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Turkey’s Steps Towards Existing FATF Grey List
It’s been a little over a year since the Turkish Finance Minister Mehmet Simsek stated that the CMB would be responsible for overseeing crypto firms. At that time, he said, “Crypto asset trading platforms will be licensed by the Capital Markets Board (CMB), and minimum operating standards will be required, including some conditions for founders and managers, organizational obligations, and capital requirements.”
The Turkish parliament was scheduled to debate a draft law in May 2024 that would require crypto asset service providers to register and obtain licenses. Creating a crypto framework is a crucial requirement for removing a company from the Financial Action Task Force’s (FATF) grey list, and the relevant parties took these actions as per those requirements.
The lack of laws around crypto affected the country’s ability to effectively monitor transactions related to digital assets. This led to multiple crypto-related scams and loopholes to exploit the regulatory gaps to launder money and fund illicit activities using cryptocurrencies.
Cut to March 2025, the market has already witnessed the unveiling of two Communiques on digital asset regulations.
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Implications for the Turkish Crypto Market
The CMB, by implementing its new guidelines, aims at safeguarding investors from potentially fraudulent activities, all the while ensuring that the CASPs operate transparently.
Also, by prohibiting derivative transactions, Turkey is expecting to lower the volatility of these assets and encourage a more stable trading environment for both retail and institutional investors.
Moreover, these guidelines allow for the nation’s crypto framework to sync up with their international counterpart, such as Europe’s Markets in Crypto-Asset Regulation (MiCA), enhancing cross-border payments.
The Turkish crypto industry, however, has elicited somewhat of a mixed response to these new regulations. Some shareholders have expressed concerns over increased operational costs and tricky compliances, while others have praised the long-term benefits of having these regulations in place.
The believers think that the new set of regulations could attract institutional investments and help in achieving sustainable growth.
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Key Takeaways
- Turkey’s CMB now fully regulates crypto service providers to enhance transparency and compliance.
- Crypto exchanges must hold at least $4.1M in capital, while custodians need $13.7M in liquid reserves.
- Turkey bans crypto derivatives but allows ICOs, aiming to stabilize trading and align with global regulations.
The post Turkey Tightens Crypto Regulations: CMB Gains Full Control Over Digital Assets appeared first on 99Bitcoins.
