Turkey is embarking on a persistent effort to revamp its crypto regulations to persuade the Financial Action Task Force (FATF) to eliminate it from the ‘grey list.’ This move follows a FATF report that determined Turkey’s full compliance with 39 of the 40 standards established by the international financial watchdog. Remarkably, the sole point of divergence pertains to crypto-assets.
Finance Minister Mehmet Simsek, meanwhile, reportedly stated that he will soon present a new bill about crypto-assets to the Turkish parliament, according to a report by Reuters.
Turkey’s presence on the FATF’s ‘grey list’ since 2021, primarily due to concerns related to money laundering and terrorist financing, has cast a shadow over the nation’s standing and economic outlook.
In reaction, Turkey has undertaken a rigorous path to align itself with FATF standards, with Simsek underscoring that the central emphasis remains on legislation on crypto-assets.
Significantly, he noted that Turkey has successfully adhered to 39 out of the 40 FATF standards, leaving the last piece of the puzzle centered around crypto-assets, which the existing legislative framework has yet to address comprehensively.
Turkey’s Crypto Transformation: A Bid For Global Compliance
Turkish authorities have been putting forth a lot of effort to improve the way they regulate cryptocurrencies in the interim. The finance ministry recently said it would conduct investigations on taxation, categorizing virtual assets, and providers of services for crypto purchases. But right now, the most important thing to do is to write a law that targets cryptoassets directly and submit it to the parliament for ratification.
The announcement made by Simsek highlights how seriously Turkey is taking this issue. Meanwhile, experts anticipate that presenting and approving the bill proposal in parliament will be the only technological compliance challenge for Turkey.
This will be a big move in Turkey’s crypto strategy toward improving its standing on the “grey list” and boosting investor trust in its economy.
Essentially, the FATF, formed by the prestigious G7 nations, is dedicated to protecting the worldwide financial network against illegal money handling and terror funding. If Turkey can smoothly shift from the ‘grey list’ to being compliant, it could earn back respect from global financial groups. This could also favorably affect the country’s digital currency scene.
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