Turkey is taking significant steps to revamp its cryptocurrency regulations in order to persuade the Financial Action Task Force (FATF) to remove it from the 'grey list'. The FATF recently reported that Turkey is fully compliant with 39 out of the 40 standards established by the international financial watchdog, with the only area of concern being crypto-assets.
Since 2021, Turkey has been on the FATF's 'grey list' due to concerns related to money laundering and terrorist financing. This designation has had a negative impact on the country's reputation and economic prospects.
In response, Turkey has made it a priority to comply with FATF standards, with a particular focus on crypto-assets legislation. While Turkey has already met 39 of the 40 standards, the remaining challenge lies in addressing the regulation of crypto-assets within the existing legislative framework.
Turkish authorities have been working diligently to refine their approach to cryptocurrency regulation. The finance ministry has announced plans to conduct studies on various aspects, including crypto asset service providers, taxation, and the classification of virtual assets. However, the crucial step now is to draft a dedicated law specifically targeting crypto-assets and present it to the parliament for approval.
Turkey's determination to overhaul its cryptocurrency regulations demonstrates its commitment to addressing the concerns raised by the FATF. By taking proactive measures to comply with international standards, Turkey aims to improve its reputation and economic prospects. The proposed law on crypto-assets is a significant step towards achieving this goal. It is essential for Turkey to swiftly enact comprehensive legislation to ensure the effective regulation of crypto-assets and pave the way for its removal from the 'grey list'.
