Turkey is making significant strides in the world of cryptocurrency regulation as it seeks to shed its “grey list” status with the Financial Action Task Force (FATF).
The FATF, an international organization dedicated to combating financial crimes, placed Turkey on this list in 2021 due to concerns related to money laundering and terrorist financing.
According to recent reports, Turkish Finance Minister Mehmet Simsek addressed a parliamentary commission on October 31 and revealed that Turkey had successfully adhered to all but one of the FATF’s 40 standards.
The one area of concern is related to crypto assets.
To address this issue, Turkey is actively drafting new regulations specifically designed for crypto assets.
The government’s aim is to present a comprehensive crypto assets law to parliament, with the ultimate goal of convincing the FATF to remove Turkey from its grey list.
While the exact legal changes have not been disclosed, it is clear that Turkey is committed to strengthening its regulatory framework for the cryptocurrency sector.
The Group of Seven (G7) established the FATF to protect the global financial system, and in 2019, it raised concerns about Turkey’s procedures for freezing assets connected to terrorism and the proliferation of weapons of mass destruction.
The Turkish government has taken these concerns seriously and is actively working on enhancing its regulatory environment.
The Turkish Presidential Annual Program for 2024, published in the Official Gazette of the Republic of Turkey on October 25, outlines the government’s plans regarding cryptocurrency regulations.
Article 400.5 of this extensive 500-page document sets a target to finalize cryptocurrency regulations within the country by the end of 2024.
This initiative aims to establish clear definitions for crypto assets, which may have tax implications in the future.
Furthermore, the program aims to provide legal definitions for crypto asset providers, such as cryptocurrency exchanges.
While the specifics of the forthcoming regulatory framework are yet to be disclosed, Turkey is demonstrating its commitment to bringing transparency and oversight to the crypto industry.
In a related development, the Central Bank of the Republic of Turkey has been actively exploring the concept of a central bank digital currency, known as the digital lira.
By December 2022, it had completed a successful initial trial of the digital lira and expressed its intention to continue testing through 2024.
These efforts signal Turkey’s willingness to embrace digital financial innovation while also adhering to international standards and expectations in the realm of cryptocurrency regulation.