Türkiye recently passed a series of new regulations to further strengthen supervision of the cryptocurrency market. On March 13, the Turkish Capital Markets Commission (CMB) issued two regulatory documents on crypto asset service providers (CASPs), covering licensing, capital requirements, operational supervision and compliance for exchanges, custodians and wallet service providers. This new framework gives CMB full regulation of encryption platforms, ensuring that it complies with Turkish and international standards. The following are the core contents of the new regulations and their interpretations.

Overview of capital requirements and compliance requirements

According to the new regulations, Turkey has set minimum capital requirements for CASPs, focusing on ensuring the operational security and financial stability of cryptocurrency custodians. Among them, capital adequacy ratio requirements are the core part, aiming to ensure that the trustee has sufficient financial reserves to fulfill their obligations.

In addition, CASPs must establish a sound compliance infrastructure and a dedicated risk management team to identify and manage various risks. Service providers also need to be equipped with corresponding monitoring systems for discovering and reporting suspicious transaction activities. At the same time, strict reporting standards must be followed and detailed transaction data must be provided to the CMB regularly. These measures are designed to enhance the overall integrity of the platform and ensure that its operations comply with international anti-money laundering (AML) standards.

1. Capital adequacy ratio

According to the "Operational Principles of Crypto Asset Service Providers and Capital Adequacy Regulations" (III-35/B.2), CASPs must hold at least US$4.1 million in capital, while the threshold for custodians is higher, at US$13.7 million. It is worth noting that fixed assets, accounts receivable and available-for-sale financial assets are not included in the minimum capital requirements.

2. Audit and Compliance

In accordance with the Principles for Establishing and Operation of Crypto Asset Service Providers (III-35/B.1), service providers must establish a solid internal audit, internal control and risk management system. In addition, mandatory risk disclosure forms must be provided before the client agreement is signed, clearly describing the risks associated with crypto assets. Exchanges also need to provide comprehensive customer support and dispute resolution mechanisms to strengthen investors' protection. In the measures to strengthen internal risk control, introducing KYT to monitor transactions in real time will showTo improve the platform's risk detection capabilities and risk control capabilities, ensure that it can efficiently identify and manage various risks.

3. Real-time transaction monitoring

The new regulations require crypto exchanges and custodians to implement real-time transaction monitoring systems (KYTs) to detect suspicious transactions. In this regard, Beosin KYT, as a leading blockchain compliance solution, can provide strong technical support for CASPs in Turkey. Beosin KYT has 24/7 real-time monitoring capabilities, which can efficiently identify high-risk transaction behaviors and automatically tag entities from FATF blacklist and graylist areas.

4. Cybersecurity Standards

Cryptocurrency custodians also need to comply with international cybersecurity standards and require cold storage solutions to protect their assets from cyber threats. Platforms must implement multi-signature authentication for asset transfers, thereby significantly reducing the risk of unauthorized withdrawals or hacking attacks.

5. Anti-money laundering requirements

CASPs should establish sound anti-money laundering systems, and implement a 24/7 real-time transaction monitoring system (KYT) that can meet the recommended requirements of the Financial Action Task Force (FATF) for entity detection in black and gray list areas. Beosin KYT has 24/7 real-time monitoring capabilities, can efficiently identify high-risk transaction behaviors, and has a special label department to collect entities tagged from the FATF blacklist (3 regions) and graylist (25 regions). The number of tags exceeds 1.7 million, helping the platform meet the FATF's anti-money laundering recommendation standards.

In addition, Türkiye's CASPs must comply with strict reporting requirements and provide operational information to the CMB in a timely manner. The new framework further strengthens the anti-money laundering standards for crypto assets, requiring CASPs to record detailed transaction information including cancellation and unexecuted transactions. Beosin KYT's comprehensive data recording and analysis capabilities can help the platform easily meet these requirements while improving overall risk control capabilities.

6. Listing and security audit of crypto assets

The new regulations put forward strict requirements on the listing process of crypto assets. According to the III-35/B.1 regulations, theMunicipal processes must undergo a rigorous security audit to ensure the security of smart contracts and listed assets to prevent transactions of high volatility or unverified assets. This measure is designed to protect investors from potential risks.

Summary

Turkey's new crypto regulatory framework aims to enhance transparency and security of the crypto market through strict capital requirements, real-time transaction monitoring, security audits and anti-money laundering measures. The introduction of Beosin KYT and security audit services has provided strong technical support to Turkey's CASPs, helping them to efficiently meet the regulatory requirements of "III-35/B.1" and "III-35/B.2". In particular, through 24/7 real-time monitoring and automatic marking of FATF blacklist and graylist entities, the platform's risk control capabilities and compliance level have been significantly improved.

As the gradual improvement of global crypto regulation, Turkey's actions may provide important reference for others.