Mehmet Simsek Announces Final Stage of Turkey’s Crypto Regulations
Turkish Finance Minister Mehmet Simsek has revealed that the draft cryptocurrency regulations in Turkey are nearing completion. Simsek stated that once these regulations are enforced, they will help mitigate the risks associated with trading crypto assets. The goal is for Turkey to be removed from the grey list of the Financial Action Task Force (FATF) through these regulations.
Crypto Trading Platforms to Be Licensed by the Capital Markets Board
Simsek disclosed in his remarks that the Capital Markets Board (CMB) will be responsible for licensing crypto trading platforms. The CMB will also establish minimum operating standards that founders and managers must adhere to, including organizational obligations and capital requirements.
Turkey’s Efforts to Address FATF Concerns
In October 2021, Turkey was placed on the FATF’s grey list due to ineffective anti-money laundering and terrorist financing mechanisms. However, in a July 2023 report, the FATF acknowledged Turkey’s progress in addressing technical compliance deficiencies. The report also highlighted the need for a law requiring virtual asset service providers (VASPs) to be licensed or registered.
Support for Blockchain Technology and the Crypto Asset Ecosystem
Simsek clarified that Turkey’s focus on safer crypto trading does not reflect opposition to emerging technologies like blockchain. He emphasized the country’s intention to foster the development of blockchain technology and the crypto asset ecosystem.
Hot Take: Turkey Nears Completion of Crypto Regulations to Ensure Safe Trading
With the final stage of its crypto regulations underway, Turkey aims to minimize the risks associated with crypto asset trading. The forthcoming regulations will be enforced by the Capital Markets Board, which will issue licenses to crypto trading platforms and establish minimum operating standards. This step is crucial for Turkey to improve its standing with the FATF and ensure effective mechanisms to combat money laundering and terrorism financing. Despite the focus on safety, Turkey remains supportive of blockchain technology and aims to foster its growth alongside the crypto asset ecosystem.
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