Turkey officials have confirmed that the country is planning to debut new regulations for the crypto market, slated to take effect in 2024. These regulations will primarily focus on addressing crypto licensing and taxation, as reported by Reuters.
The driving force behind Turkey’s decision to implement these regulations is the Financial Action Task Force (FATF). Turkey aims to overcome its ‘grey-list’ status and address the concerns raised by the FATF. In 2022, Turkey ranked fourth globally in terms of crypto transaction volumes, trailing behind the United States, India, and the United Kingdom, according to Chainalysis. This surge in crypto activity can be attributed to surging inflation and the devaluation of the lira currency.
Turkish Finance Minister, Mehmet Simsek, announced this development during a parliamentary commission discussion on October 31, 2023. Simsek highlighted that Turkey has already complied with most of the FATF’s requirements, with the only remaining issue being the work related to crypto assets. He further stated, “We will submit a law proposal on crypto-assets to the parliament as soon as possible. After that, there will be no reason to stay on that grey list if there are no other political considerations.”
Top Priorities in the New Regulation
“Certain licensing standards will be one of the top priorities in the new regulation,” said Bora Erdamar from the BlockchainIST Center.
Erdamar also emphasized that introducing licensing standards is crucial to prevent the abuse of the system. Alongside licensing standards, the new regulations will include capital adequacy requirements, enhanced digital security measures, custody services, and proof of reserves. Turkey aims to address the FATF’s concerns regarding the country’s risk of money laundering.
