The Turkish finance minister has unveiled plans to enact fresh regulations governing crypto assets according to a report. The primary objective is to convince the Financial Action Task Force (FATF) to remove Turkey from its ‘grey list’—a designation given to nations falling short in combating money laundering and terrorist financing.
Background: FATF’s 2021 Decision
The FATF placed Turkey on its grey list in 2021, highlighting deficiencies in adhering to international standards. Despite complying with 39 out of 40 standards, the only outstanding technical compliance matter pertains to crypto assets.
During a recent discussion with a parliamentary commission on Oct. 31, Finance Minister Mehmet Simsek revealed Turkey’s commitment to addressing the lone compliance issue. Simsek outlined plans to propose a comprehensive crypto assets law to parliament, aiming for removal from the grey list.
G7 Caution and 2024 Program
The G7 had previously warned Turkey in 2019 about deficiencies in asset freezing procedures related to terrorism and weapons proliferation. The Turkish Presidential Annual Program for 2024, released on Oct. 25, outlines the ambitious goal of finalizing cryptocurrency regulations by the year’s end.
Proposed Legal Changes and Central Bank’s Role
Article 400.5 of the program details the specific efforts to establish clear definitions for crypto assets, potentially subjecting them to taxation in the future. The legislation also aims to legally define crypto asset providers, including cryptocurrency exchanges.
By December 2022, the Central Bank of the Republic of Turkey had conducted a successful initial trial of its central bank digital currency, the digital lira. The bank has expressed intentions to continue testing into 2024.
Turkey’s proactive approach to addressing FATF concerns through comprehensive crypto regulations reflects its commitment to international standards and financial security.
Read More:
Solana Eases Deployment with AWS for Blockchain Node Runner Initiative
MetaMask Launches Blockaid’s upgraded security notifications for its users