Turkey Seeks to Remove Itself from FATF’s Grey List with New Crypto Legislation
Turkey is working on implementing stricter cryptocurrency regulations in order to convince the Financial Action Task Force (FATF) to remove it from its “grey list.” The FATF’s grey list consists of countries that have not taken sufficient action to combat money laundering and terrorist financing.
Turkish Lawmakers Prepare New Crypto Legislation
According to reports, Turkish lawmakers are developing new crypto legislation to address the concerns raised by the FATF. In 2021, Turkey was added to the grey list due to perceived deficiencies in its anti-money laundering and counter-terrorism financing efforts.
The FATF, established by the Group of 7 (G7), aims to safeguard the global financial system. The task force had previously highlighted significant shortcomings in Turkey’s measures against money laundering and terrorist financing.
Turkey Aims for Full Compliance with FATF Standards
Turkish Finance Minister Mehmet Simsek recently stated that a FATF report found Turkey to be fully compliant with all but one of its 40 standards. The remaining issue pertains to crypto assets.
Simsek emphasized that once a law proposal on crypto-assets is submitted to parliament, Turkey will have fulfilled all technical compliance requirements. This would remove any reason for Turkey to remain on the grey list, unless there are political considerations.
Digital Lira Development and CBDC Trials
In addition to working on new crypto regulations, Turkey is also progressing with its plans for a central bank digital currency (CBDC) called the digital Lira. The Central Bank of the Republic of Turkey has completed the first trial of its CBDC and will continue studying its legal and economic framework throughout 2023.
Hot Take: Turkey’s Efforts to Improve Regulatory Framework and Remove Itself from the Grey List
Turkey is taking significant steps to enhance its regulatory environment for cryptocurrencies and address concerns raised by the FATF. By developing new legislation and demonstrating progress in compliance with FATF standards, Turkey aims to remove itself from the grey list.
In addition, the country is actively exploring the development of a central bank digital currency, which further showcases its commitment to embracing digital financial technologies. These efforts reflect Turkey’s determination to strengthen its position within the global financial system and combat illicit financial activities.
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