Turkey’s Regulatory Reformation
In a bid to escape the Financial Action Task Force (FATF) grey list, Turkey is reportedly crafting new regulatory guidelines for crypto assets. The move comes after the Turkish Finance Minister Mehmet Simsek emphasized that cryptocurrency is the last remaining technical compliance matter needing resolution.
FATF’s Grey Listing: A Recap
Turkey found itself on the FATF’s grey list in 2021, a tag indicating a country’s insufficient efforts in curbing money laundering and terrorist financing. However, during a recent parliamentary commission discourse on October 31, Simsek pointed out that except for the regulation of crypto assets, Turkey complies with all other 39 standards set by the FATF.
The Crypto Regulation Blueprint
Aiming to alleviate FATF’s concerns, Simsek mentioned the proposal of a crypto assets law to the parliament, though the specifics of the legal alterations remained undisclosed. This regulation intends to bridge the existing gap and pave the way for Turkey’s exit from the grey list.
Beyond Crypto Regulations: A Holistic Approach
Despite past warnings from FATF regarding significant deficiencies, notably in freezing assets linked to terrorism and weapons of mass destruction proliferation, Turkey’s 2024 Presidential Annual Program, unveiled on October 25, ambitiously targets the completion of cryptocurrency regulations by year-end 2024. The document delineates the forthcoming endeavors to legally define crypto assets and providers like cryptocurrency exchanges, aligning with the broader objective of fortifying Turkey’s financial framework against illicit activities.
Digital Lira: A Step Towards Modernization
Further showcasing Turkey’s dedication to embracing digital transformation, the Central Bank of the Republic of Turkey successfully trialed its digital currency, the digital lira, by December 2022. The pursuit of further testing into 2024 signifies Turkey’s proactive approach in not only adhering to international financial standards but also advancing its national digital currency agenda.
