Turkey's governing party has submitted a draft bill to parliament aimed at regulating the country's cryptocurrency industry. The bill aligns with global norms and focuses on registering and licensing cryptocurrency service providers. The Capital Markets Board (CMB) will be responsible for issuing licenses to crypto trading platforms and related service providers.

The proposed legislation aims to protect consumers, increase transparency in platforms, and ensure compliance with financial regulations. It will regulate cryptocurrency asset service providers, platform operations, storage, and transactions involving Turkish residents. The bill also categorizes cryptocurrencies and projects to ensure conformity with existing financial norms.

The Financial Action Task Force (FATF) Travel Rule requires financial institutions and cryptocurrency companies dealing in digital asset sales to share accurate originator and beneficiary information with other financial institutions or counterparty VASPs during transactions. Turkey was downgraded to the FATF's "gray list" in October 2021 due to its banking, real estate, and other businesses' lack of Anti-Money Laundering procedures.

The bill aims to increase Turkey's compliance with international standards regarding crypto assets, address criticism from the FATF, and make the country's crypto ecosystem safer. The ruling AK Party has emphasized the importance of regulating the crypto industry to protect citizens and investors. The proposed legislation is expected to bring Turkey's crypto industry under the CMB's supervision and establish important rules for crypto service providers.