Turkey is actively working towards strengthening its crypto regulations to address concerns raised by the Financial Action Task Force (FATF), an international financial crime watchdog. The country aims to be removed from the “grey list” of nations that have not done enough to combat money laundering and terrorist financing.
The Turkish Finance Minister, Mehmet Simsek, stated in a recent address to a parliamentary commission that Turkey has been found to be fully compliant with 39 out of the 40 standards set by the FATF. The remaining concern is related to crypto assets, according to a new FATF report. Simsek announced that Turkey will be proposing new legislation specific to crypto-assets to the parliament in the near future.
If this legislation is successfully implemented, Turkey will have addressed the FATF’s concerns and no longer have a reason to remain on the grey list. However, the removal from the list is contingent upon there being no political considerations.
Turkish Government’s Efforts to Regulate Crypto Assets
- Establishing a regulatory framework for crypto assets is part of Turkey’s Presidential Annual Program for 2024, as announced recently.
- This framework will include plans to tax crypto assets, starting in 2024.
As Turkey grapples with soaring inflation, there has been a surge in crypto investors in the country. A survey conducted by crypto exchange KuCoin earlier this year revealed that over half of the Turkish population has turned to cryptocurrencies as a safeguard against inflation.
The Financial Action Task Force and its Role
The Financial Action Task Force (FATF) was established in 1989 by the G7 nations. Its primary objective is to develop policies and regulations to prevent money laundering and terrorist financing on a global scale.
