Turkey Official Says Crypto Framework to be Presented to Parliament in October

Turkey Official Says Crypto Framework to be Presented to Parliament in October

Turkey’s Deputy Minister of Treasury and Finance – Şakir Ercan Gül – revealed that the officials have completed the draft bill with the regulatory framework for cryptocurrencies and will present it to the Parliament in October 2021. He opined that the Asian country needs to learn from Western Europe and the USA but should implement stricter rules.

The Crypto Bill Is Ready

According to a recent report, the Turkish Deputy Minister of Finance – Şakir Ercan Gül – stated that the authorities had finished creating a proper cryptocurrency regulation model. The proposed bill will aim to prevent money laundering, strengthen investor protection, and control digital assets trading.

Gül asserted that it would be submitted to the Parliament at the start of the next legislative year in October 2021. He added that Turkey needs to take Europe and the USA as examples but still put into action stricter legislature than them:

“We are bringing a slightly more stringent regulation because we are a country with a free exchange and exchange rate regime. There are free mechanisms in Western Europe and America. We bring a little more strict regulation. Do not make more or less Western European or American-like regulations in a structure with a free exchange regime.”

The proposed bill will also define the issuance and distribution of the different types of virtual currencies and the principles that traders must comply with. Furthermore, the Capital Markets Board will reportedly supervise the companies dealing with digital assets, and a minimum capital requirement will be introduced. While the new rules sound like a big bite, the authorities will grant enough adaptation time.

The Turkish lawmakers intend to give supervisory authority to the Financial Crimes Investigation Board (FCIB). At the same time, the Banking Regulation and Supervision Agency (BRSA) will provide surveillance mechanisms for consumer protection, market integrity, and competition.

Regulations Could Be Healthy for Cryptocurrencies

Jihan Wu – the founder and former CEO of the crypto mining company Bitmain – recently opined that a proper legislative framework around digital assets is necessary and beneficial for the industry. In his opinion, regulations would significantly reduce the illegal actions of scammers and make the space more secure:

“I think the regulatory pressure is stronger than before, but it will get a lot of bad actors out of the industry and make sure that the industry’s reputation is much better than without it. So I think this kind of a crackdown may be a good thing for the industry in the long term.”

Caitlin Long also gave her two cents on the matter. The CEO of Avanti believes that regulatory crackdown would not impact bitcoin, ether, and other digital coins directly as “base layers will keep adding blocks.”