Turkey is making a determined move to overhaul its cryptocurrency regulations to convince the Financial Action Task Force (FATF) to remove it from the ‘grey list.’ This development comes after a FATF report found Turkey fully compliant with 39 of the 40 standards set by the international financial watchdog. Notably, the single area of concern is crypto-assets.
Meanwhile, according to Reuter’s report, Finance Minister Mehmet Simsek announced plans to submit a new law proposal covering crypto-assets to the Turkish parliament shortly.
Turkish Crypto Legislation Seeks A Path Out of the Grey List
Turkey has been on the FATF’s ‘grey list’ since 2021 due to issues concerning money laundering and terrorist financing. This designation has impacted the country’s reputation and economic prospects.
In response, Turkey has embarked on a journey to ensure compliance with FATF standards, with Simsek highlighting that the primary focus remains crypto-assets legislation.
Notably, he stated that Turkey had met 39 out of the 40 FATF standards. The final piece of the puzzle lies in crypto-assets, which are yet to be fully addressed by the current legislative framework.
Meanwhile, Turkish authorities have been working tirelessly to refine their approach to cryptocurrency regulation. A recent announcement from the finance ministry indicated plans to conduct studies related to crypto asset service providers, taxation, and the classification of virtual assets. However, the decisive move now is to draft a law specifically targeting crypto-assets and present it to the parliament for approval.
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The Nation’s Focus On Enhancing Its Global Reputation
Simsek’s announcement underscores the urgency with which Turkey is treating the matter. Meanwhile, once the law proposal is introduced to the parliament and gains approval, it is expected that Turkey will no longer have a technical compliance concern.
This will be a significant step in Turkey’s crypto stance and towards lifting the ‘grey list’ status while restoring confidence in the Turkish economy.
Notably, the FATF, established by the G7 group of advanced economies, aims to safeguard the global financial system against money laundering and terrorist financing. A successful transition from the ‘grey list’ to compliance would help Turkey regain trust in international financial circles and positively impact the cryptocurrency landscape in the country.
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