Turkey Nears Crypto Legislation to Remove from FATF Grey List
Turkey is on the verge of implementing crypto legislation that could result in its removal from the Financial Action Task Force (FATF) grey list, according to Finance Minister Mehmet Şimşek. During a meeting with the nation’s planning and budget commission, Şimşek stated that Turkey has fulfilled 39 of the 40 FATF standards and is now in the “final stage” of compliance.
The FATF grey list serves as a warning to countries to address deficiencies in their anti-money laundering and counter-terrorist financing systems. Turkey has been on this list since 2021, impacting its already vulnerable economy. The high inflation rates have led many Turks to turn to cryptocurrencies as an alternative financial refuge.
Clearing Hurdles for Compliance
Şimşek revealed that the only remaining obstacle for Turkey is related to cryptocurrency assets. Efforts to meet FATF’s technical requirements are in their final stages. Last week, Turkey’s finance ministry also announced plans to study the regulation of crypto asset service providers, as well as define and tax virtual assets.
With a lack of robust regulation, the Turkish crypto market has been susceptible to manipulation and scams. The recent THODEX scandal highlighted the urgent need for government oversight.
“We will submit a law proposal on crypto-assets to the parliament as soon as possible. After that, there will be no reason for Turkey to stay in that grey list if there are no other political considerations.” – Mehmet Şimşek, Minister of Finance of Turkey
Impact on Turkey’s Crypto Community
Cryptocurrency usage has surged in Turkey since 2019, with over 50% of adults engaging in digital asset investment or services in the past three years. The forthcoming regulations will likely affect Turkey’s growing crypto community and may also influence neighboring countries’ approach to digital asset regulation and taxation.
Hot Take: Turkey Aims to Boost Economy and Crypto Confidence
Turkey’s push to introduce crypto legislation demonstrates its commitment to strengthening its economy and restoring confidence in the financial system. By addressing deficiencies in anti-money laundering and counter-terrorist financing measures, Turkey aims to be removed from the FATF grey list, signaling its dedication to international standards. The impending regulations will also provide much-needed oversight and protection for the Turkish crypto market, safeguarding investors from scams and manipulation. Moreover, these developments could serve as a benchmark for neighboring countries in their approach to regulating and taxing digital assets. Overall, this proactive stance by Turkey has the potential to foster a more secure and vibrant crypto ecosystem within the country.
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