Turkey’s Capital Markets Board is reportedly planning to regulate cryptocurrency-related transactions.
The Capital Markets Board of Turkey (CMB), the regulatory agency that oversees the nation’s financial securities markets, is in the process of formulating guidelines to examine, audit, and regulate the local digital asset markets, local media outlet Hurriyet confirmed on January 4, 2020.
Turkey’s regulatory authorities have expressed concerns about investor protection issues when dealing with highly speculative crypto-assets. The country’s government entrusted CMB with the establishment of regulatory guidelines for digital asset markets, the report noted. As per the request of the Turkish government, the CMB is preparing to focus on improving its auditing processes and will also begin regulating crypto markets in Turkey.
Emphasizing the nation’s potential in both crypto and the larger blockchain industry, financial industry professional Erkan Oz said that the Turkish Capital Markets Board’s (CMB) legal structure was planning to support the ongoing growth of the domestic crypto industry.
“I guess CMB would also protect investor rights, which will bring many more investors to crypto projects.”
Alphan Gogus, general manager of crypto exchange Huobi’s Turkey division, said that Turkish regulators’ positive and receptive approach should accelerate the adoption of crypto-assets in the country’s markets. This may “lead to a growth in the active user base and trading volume, thus the value of the Turkish crypto market will increase,” Gogus argued.
He also pointed out that the new regulatory guidelines could eliminate any potential adverse effects of bad practices across the local cryptocurrency industry while encouraging greater cooperation with traditional financial institutions.
Cagla Gul Senkardes, CEO at MenaPay, noted:
“The crypto industry needs sustainable growth, so any news regarding crypto regulation is welcomed. Having a regulatory framework for crypto that ensures the security and sustainability of local and global contributions would pave the way for new investments, employment, and innovation.”
Turkey is one of the leading global adopters and established markets for blockchain and cryptocurrencies. Major digital asset exchanges Binance and Huobi have been expanding their operations in the country. The Turkish government is also working on a central bank digital currency (CBDC).