Turkey and USA Strengthen Cryptocurrency Oversight with New Regulations

Turkey and the USA have both taken notable steps in the realm of cryptocurrency regulations today. Turkey focused on combating money laundering to comply with FATF standards, while the US Senate passed a controversial proposal challenging an SEC rule, which is likely to face a presidential veto.

Turkey’s Progress in Crypto Regulation

Turkey has made significant advancements in its regulatory framework for cryptocurrencies, as part of its efforts to combat money laundering and comply with the Financial Action Task Force (FATF) requirements. Ömer İleri, one of the key figures behind the draft law, clarified several aspects of the new regulations.

Key Provisions of Turkey’s Crypto Law

One major aspect of the new law is that global exchanges will not face bans, ensuring continued access for Turkish users. Additionally, there will be no new taxes imposed on end users, which is a relief for the trading community. TÜBİTAK, Turkey’s scientific and technological research council, will not directly intervene in the token listing process on exchanges. Instead, a structured procedure will be implemented to ensure that listings are orderly and compliant with regulatory standards.

Role of TÜBİTAK and Taxation Details

According to İleri, TÜBİTAK will have a consultative role rather than a decisive one in the listing of crypto assets. The Capital Markets Board (CMB) will establish principles and procedures for listing, potentially incorporating technical criteria from TÜBİTAK and other institutions. The proposed law stipulates that platforms will pay one percent of their revenue (excluding interest income) to both the CMB and TÜBİTAK by the end of May each year, but this does not affect end users.

US Senate Challenges SEC Rule on Digital Assets

In the United States, the Senate passed a proposal challenging an SEC rule that mandates banks to hold their customers’ digital assets on their balance sheets. This move, which passed with a vote of 60 to 38, sets the stage for a significant clash with the executive branch.

President Biden’s Veto Threat

President Joe Biden had previously warned against attempts to overturn the SEC rule, indicating his intention to veto the proposal if it reached his desk. Despite bipartisan support in the Senate, the proposal is expected to face a presidential veto. This conflict underscores the growing tension between regulatory bodies and legislative actions in the rapidly evolving crypto space.

Industry Reaction and Implications

The Blockchain Association highlighted the significance of the Senate vote, noting it reflects a broader public interest in cryptocurrency regulation. The association emphasized that the 60 ‘Yes’ votes signal a clear disapproval of the SEC rule from both chambers of Congress. This development indicates a rising awareness and concern among voters, particularly younger demographics, about the need for thoughtful regulation of cryptocurrencies.

Also Read: Crypto Regulation: Singapore Implements Stringent Guidelines