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Turkey’s proactive approach to digital currency

Turkey

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TL;DR

  • Turkey targets FATF compliance with crypto rules.
  • Crypto asset issue keeps Turkey on FATF ‘grey list.’
  • Turkey advances with digital lira trials.

Turkey is taking steps to address the remaining issues that have kept it on the Financial Action Task Force (FATF) ‘grey list’ since 2021. The country’s Finance Minister, Mehmet Simsek, recently announced that they are drafting new regulations to govern cryptocurrency assets. These efforts are aimed at convincing the FATF to remove Turkey from the list of nations that have not done enough to combat money laundering and terrorist financing.

In 2021, the FATF placed Turkey on its ‘grey list,’ expressing concerns about the country’s anti-money laundering and counter-terrorism financing efforts. A recent FATF report, however, revealed that Turkey had met most of the 40 standards set by the organization, with just one outstanding matter related to cryptocurrency assets.

Finance Minister Mehmet Simsek addressed this issue during a discussion with a parliamentary commission. Simsek stated that the only remaining matter for technical compliance with FATF standards pertains to cryptocurrency assets. He announced plans to propose new legislation concerning crypto assets to the parliament. Although specific legal changes were not disclosed, this initiative signifies Turkey’s commitment to addressing the outstanding concern and exiting the FATF ‘grey list.’

Turkey’s crypto regulation commitment for FATF compliance

To further underscore their commitment, the Turkish Presidential Annual Program for 2024, released in the Official Gazette of the Republic of Turkey, sets a clear objective of completing cryptocurrency regulations in the country by the end of 2024. Article 400.5 of this comprehensive 500-page document outlines Turkey’s intended efforts, which include establishing clear definitions for crypto assets and the possibility of subjecting them to taxation in the future.

The document seeks to provide legal definitions for crypto asset providers, such as cryptocurrency exchanges. While it outlines these intentions, it does not offer specific details about the regulatory framework itself.

By December 2022, the Central Bank of the Republic of Turkey had successfully conducted the initial trial of its central bank digital currency, known as the digital lira. The central bank has expressed its intentions to continue testing the digital lira into 2024. These initiatives reflect Turkey’s proactive approach to adapting to the evolving financial landscape, including the growing influence of cryptocurrencies and digital assets.

Turkey is determined to address the remaining concerns raised by the FATF regarding cryptocurrency assets and money laundering. The country’s commitment is evident through its proposed cryptocurrency regulations and the recent successful trial of its central bank digital currency. By taking these steps, Turkey aims to secure its removal from the FATF ‘grey list’ and demonstrate its dedication to international efforts against financial crimes. The specifics of the upcoming regulatory framework are yet to be revealed, but the overall direction is clear – Turkey is actively working towards a more robust regulatory environment for cryptocurrencies.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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