Turkey has unveiled a new set of cryptocurrency regulations, placing the Capital Markets Board (CMB) in full control of the sector. The new framework outlines strict criteria for Crypto Asset Service Providers (CASPs), including financial integrity and legal compliance, before they are allowed to operate. This move is part of the government's efforts to enhance investor protection and stability in the crypto market. Additionally, CASPs are now required to insure user crypto assets, further bolstering security.

The new regulations also introduce substantial licensing and capital requirements for crypto businesses. Founders must demonstrate financial stability, and the capital must be paid in cash, with minimum thresholds determined by the CMB. Failure to meet these standards could result in the denial of operating licences. To ensure compliance, the CMB has been granted the power to revoke licences and impose penalties on companies that violate the rules.

These new rules come as part of Turkey's broader effort to strengthen its financial regulatory framework and secure delisting from the Financial Action Task Force's (FATF) grey list. By increasing oversight and promoting transparent operations, Turkey aims to make the cryptocurrency sector more secure without stifling innovation, positioning itself as a secure hub for blockchain technology and crypto trading.

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