Crypto Craze: Turkey's New Regulations Aim to Secure Global Financial Status

Crypto Craze: Turkey's New Regulations Aim to Secure Global Financial Status

Turkey is taking steps to address its position on the Financial Action Task Force (FATF) "gray list" by drafting new regulations aimed at regulating crypto assets and enhancing measures against money laundering and terrorist financing. The FATF had placed Turkey on this list in 2021, citing concerns about the country's compliance with its 40 standards for combating financial crimes.

During a recent discussion with a parliamentary commission, Turkish Finance Minister Mehmet Simsek revealed that Turkey has met most of the FATF standards, with only one outstanding issue related to technical compliance: crypto assets. While specifics of the proposed legal changes were not disclosed, Simsek stated that Turkey plans to introduce a crypto assets law to address this issue and ultimately exit the gray list.

The FATF, established by the Group of Seven (G7) advanced economies, is responsible for safeguarding the international financial system by setting global standards to combat financial crimes. In 2019, the FATF had cautioned Turkey about significant deficiencies in procedures for freezing assets linked to terrorism and the proliferation of weapons of mass destruction.

To meet these regulatory challenges, Turkey's Presidential Annual Program for 2024, released on October 25, includes a commitment to complete cryptocurrency regulations in the country by the end of 2024. Article 400.5 in the comprehensive 500-page document outlines Turkey's intentions to establish clear definitions for crypto assets and potentially subject them to taxation in the future. Additionally, the document aims to legally define crypto asset providers, including cryptocurrency exchanges.

This move signals Turkey's commitment to strengthening its regulatory framework concerning crypto assets and addressing the FATF's concerns, potentially allowing the nation to exit the gray list and bolster its efforts to combat money laundering and terrorist financing.

Also Read: Notable Crypto Transfers Raise Questions About FTX and Alameda Research Wallets

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