Turkey has given its Capital Markets Board (CMB) complete control over crypto asset service providers (CASP) to better manage its rapidly growing cryptocurrency market.
On March 13, 2025, the CMB published two regulatory documents concerning the Establishment and Operating Principles of Crypto Asset Service Providers and Working Procedures and Principles of Crypto Asset Service Providers and Capital Adequacy.
These guidelines stipulate licensing and operational standards for CASPs including exchanges, custodians, and wallet services, ensuring they operate legally in the country.
JUST IN: Turkey has strengthened crypto regulations, granting the Capital Markets Board full oversight over exchanges and imposing stricter compliance requirements on investors. pic.twitter.com/CSa2TJizUf — FinNews (@FinNews_) March 14, 2025
Key Provisions Aligning Turkey’s Crypto Regulations with International Standards
The newly created structure calls for strict adherence to both national and international compliance criteria. For instance, operating a crypto exchange now requires a minimum capital of approximately $4.1 million, while custodians must maintain at least $13.7 million. This requirement underlines the necessity for liquid capital reserves.
The CMB has forbidden derivative transactions involving cryptocurrencies to curb speculative trading and potential market manipulation. However, exchanges can proceed with initial coin offerings (ICOs) as long as they meticulously assess the associated smart contracts.
Turkey’s Steps Towards Addressing FATF Grey List
Over a year ago, Finance Minister Mehmet Simsek stated that the CMB would oversee crypto firms, highlighting that licensing would be obligatory for platforms. The Turkish parliament plans to review a draft law in May 2024, necessitating crypto service providers to obtain registration and license.
In recent months, the CMB has outlined crucial regulations to keep pace with international standards. This move is deemed vital for removing Turkey from the Financial Action Task Force’s (FATF) grey list.
Implications for the Turkish Crypto Market
The CMB’s new guidelines aim to protect investors from fraud while ensuring transparency among CASPs. Some market participants have voiced concerns about rising operational costs and complex compliance, while others believe these regulations will attract institutional investment, fostering sustainable growth.
Key Takeaways
- Turkey’s CMB now fully regulates crypto service providers to enhance transparency and compliance.
- Crypto exchanges must hold at least $4.1 million in capital.
- The ban on crypto derivatives aims to stabilize market operations.
