Regulating FinTech in Turkey: The Need for a Unified Legal Framework

Introduction

The rapid pace of digital transformation has significant implications for the investment ecosystem in Turkey. In this article, Dr. Kutlay Telli highlights the importance of a unified legal framework to regulate FinTech-related businesses. He emphasizes that fragmented legal structures can lead to unintended consequences and crippling effects on regulatory institutions.

The Challenges of Regulatory Fragmentation

• Regulatory lag: The inability of regulatory bodies to keep pace with the rapid evolution of FinTech
• Friction: Conflicting regulations and laws that hinder the growth of FinTech businesses
• Transition: The need for regulatory frameworks to adapt to changing market conditions

The Role of Regulatory Institutions

Dr. Telli notes that regulatory institutions such as:

• Banking Regulation and Supervision Agency (BRSA): Plays a crucial role in regulating payment institutions and electronic money institutions
• Personal Data Protection Authority: Ensures the protection of personal data and compliance with relevant regulations

The Importance of a Unified Regulatory Framework

• Payment institutions and electronic money institutions must be members of the Association
• FinTech entrepreneurs must review and analyze their rights and obligations before entering Turkey

A Roadmap for FinTech Businesses

Dr. Telli stresses the importance of a legal and business guidance for a proper roadmap about all FinTech-related businesses.

Conclusion

A unified legal framework is essential for regulating FinTech activities in Turkey. Relevant stakeholders must work together to address emerging risks and challenges associated with e-payment financial markets.

Sources:

• Dr. Kutlay Telli’s research, reports, and books on FinTech and its related challenges
• Various regulatory bodies and institutions in Turkey