<p>In an effort to secure removal from the Financial Action Task Force’s (FATF) “grey list,” Turkey is in the process of crafting new regulations governing crypto assets.</p><p>The FATF, established by the Group of Seven (G7) advanced economies, serves as a guardian of the international financial system. It’s an international organization dedicated to combating financial crimes, which added Turkey to its “grey list” in 2021. In 2019, it cautioned Turkey about significant deficiencies in procedures for freezing assets linked to terrorism and the proliferation of weapons of mass destruction.</p><h2 id="header-0">Crypto compliance for FATF upgrade</h2><p>Turkish Finance Minister Mehmet Simsek recently discussed this matter with a parliamentary commission, according to a <a href="https://www.reuters.com/world/middle-east/turkey-toughen-law-crypto-assets-minister-2023-11-01/" rel="noopener noreferrer nofollow">report</a> published by Reuters. Simsek highlighted the FATF’s evaluation of Turkey’s adherence to 39 out of the 40 standards set by the organization. The single outstanding issue pertains to crypto assets, and Simsek revealed plans to introduce a crypto assets law in parliament to address this concern. However, he did not delve into specific legal changes.</p><p>The Turkish government is taking action to align with international standards and remove the shadow of the “grey list.” The Turkish Presidential Annual Program for 2024, as published in the Official Gazette of the Republic of Turkey on October 25, outlines a commitment to establish comprehensive cryptocurrency regulations in the country by the end of 2024. Within the extensive 500-page document, Article 400.5 sets the goal of providing clear definitions for crypto assets, potentially subjecting them to taxation in the future.</p><p>Additionally, the document seeks to establish legal definitions for crypto asset providers, including cryptocurrency exchanges. However, it refrains from specifying the finer details of the upcoming regulatory framework.</p><h2 id="header-1">Crypto popularity</h2><p>Turkey has been an outlier in terms of cryptocurrency use by comparison with many of its international peers. A <a href="https://medium.com/&#64;coinness.gl/kucoin-report-points-to-marked-increase-in-crypto-investors-in-turkey-52a0bca76534" rel="noopener noreferrer nofollow">report</a> by KuCoin earlier this year validated that reality, indicating a significant increase in the number of crypto investors in Turkey over the course of the previous 18 months. In the aftermath of a devastating earthquake which hit the country on Feb. 6, crypto was <a href="https://www.ft.com/content/48b1a7c1-2a2f-47ab-8512-0c719be69c07" rel="noopener noreferrer nofollow">reported</a> to have been used as a means to get aid to those affected quickly and easily.</p><p>However, developments in the crypto space have also included difficulties. It was <a href="https://medium.com/&#64;coinness.gl/report-cites-escalating-crypto-use-by-pro-isis-groups-a2e49666aed3" rel="noopener noreferrer nofollow">reported</a> in July that the use of crypto for the earthquake relief effort in Turkey was also being used as a cover by an affiliate of the terrorist group ISIS to launder money and receive funding. Turkish users of the Thodex crypto exchange platform were the victims of <a href="https://medium.com/&#64;coinness.gl/no-turkish-delight-for-crypto-exchange-ceo-sentenced-to-11-196-years-880c227c458e" rel="noopener noreferrer nofollow">fraud</a> in 2021, with the founders of that business having been sentenced for that fraud in September. In 2021 the country moved to <a href="https://www.reuters.com/technology/turkey-bans-use-cryptocurrencies-payments-sends-bitcoin-down-2021-04-16/" rel="noopener noreferrer nofollow">ban</a> crypto payments against a background that has seen the Turkish lira experience hyper-inflation.</p><h2 id="header-2">CBDC development</h2><p>Turkey’s central bank has been making strides in the digital currency arena, successfully conducting the <a href="https://www.coindesk.com/policy/2022/12/29/turkish-central-bank-runs-first-cbdc-tests/" rel="noopener noreferrer nofollow">initial trial</a> of its central bank digital currency (CBDC), the digital lira, by December 2022. The central bank has expressed its intention to continue testing and exploring digital currency development throughout 2024.</p><p>The move to enhance regulation and compliance in the crypto sector in Turkey aligns with global efforts to ensure transparency and accountability in financial systems.</p>

Turkey crafts new crypto regulations with FATF grey list removal objective

Table of Contents

CoinNess Global

Other articles published on Nov 2, 2023

Crypto Prices Today: Market Surges As BTC, Pepe Coin, TIA Rally

USDT market cap surges as fiat capital flows into crypto

Stellar (XLM) Price Reclaims $0.11: A Trend Reversal in Progress?

Solana faces imminent price correction: Here’s why

Ethereum at $2,000 a ‘few weeks away,’ says expert

China to use blockchain for cross-border payments

Join our free newsletter for daily crypto updates!