Turkish Crypto Regulation Aims to Safeguard Investors

AK Party Information and Communication Technologies Chairman Omer Ileri stated that there is no regulation on crypto assets in the USA, and that the regulation called “MICA” in the EU will be effective in December. He said that they are working to make Turkiye one of the leading countries in the world with the bill they will submit to the Parliament after the local elections.

AK Party Deputy Chairman Ileri answered questions regarding the draft legal regulation for crypto assets, which is expected to be submitted to the Parliament after the March 31 Local Government Elections.

Stating that blockchain technologies are one of the priority areas of the AK Party, Ileri reminded that they allocated a separate place to this issue in the Medium Term Program and the 2023 General Election Declaration.

Ileri pointed out the importance of the crypto assets issue and said that they are working on a legal regulation to pave the way for Turkiye in this field.

Noting that crypto assets have attracted a lot of attention in Turkiye, Ileri said that currently 10 million people in Turkiye have crypto asset accounts.

Omer Ileri stated that there is a need for regulation in this field and said, “A significant part of these users agree that this field should be implemented under state control in a sense. Everyone says that there is a need for regulation here. We have carried out various studies in this direction, especially with our ministry. As of now, work continues in our Parliamentary group.”

Emphasizing that the main purpose of this regulation is to bring a legal framework to this field, Ileri said, “Our aim is to pave the way for Turkiye in this field, on the one hand, and to protect our citizens and investors, on the other hand. We are trying to maintain a delicate balance here.”

AK Party Deputy Chairman Ileri continued as follows:

“Blockchain technologies are an area that we, as the AK Party, have been following closely for a while. You may remember that we had ‘Forum Metaverse’ and ‘Blockchain Istanbul’ events. Our President attended these events. These events became the first events in which a state leader participated in this field. It is an area we care about for Turkiye’s future. Being aware of the importance of this area, we are carrying out an important work to protect our citizens on the one hand, and to pave the way for the area on the other hand.

It becomes a really well-studied bill. There is no regulation in the crypto field that has been implemented at the federal level in the USA, but there is a regulation called ‘MiCA’ in the European Union, which has reached a compromise stage between the Council and the Parliament and will become effective as of December 2024. We are working to make Turkiye one of the leading countries in the world in this field.”

“We are creating a flexible infrastructure”

Saying that the regulation will make basic definitions and provide a basic framework for the crypto field, Ileri said, “The study will also bring various regulations that will regulate crypto asset platforms, service providers, service providers and service models.”

“We are creating a flexible infrastructure,” said Ileri, underlining that this is a study that will be built on basic concepts, and that the details will be implemented with secondary regulations as necessary in the future.

Industry stakeholders support the bill

Ileri stated that they invited the stakeholders in the sector and received their opinions and said, “We see that a really good regulation is emerging. We are approaching the final stages, it will be on our agenda right after the election.”

Stating that the regulation is innovative and paves the way for the sector, Ileri said, “We see that the sector stakeholders largely support the current bill.”

Ileri stated that in the past there were processes that the sector “thought were not understood”, and gave the following information: “We listened to them both at the AK Party Headquarters, in our Parliament and through the institutions of our Ministry, we speak their language, we understand very clearly what they mean, and we have largely reflected their demands in the proposal.”

Regarding how to ensure the security of crypto asset owners, Omer Ileri said:

“What we actually mean by security is this; as an investor, when you start receiving services from a platform, you are informed correctly, this platform has the appropriate infrastructure, it is reliable in this sense, you are not faced with risks that you would not want to face under normal conditions, through these platforms… Actually, there is a very general definition of security here.

To protect investors and citizens from misdirection within the framework of equity, to protect their investments, to block malicious actors, but to pave the way for the sector while doing all these, to do both. The main problem is always to solve this dilemma. We see that a very appropriate balance has been achieved here.”

Source: Trthaber / Prepared by Irem Yildiz

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