The Turkish government said cryptocurrency regulation is in the ‘final stages’ of completing technical studies to introduce licensing and operating standards for trading platforms.
Turkey’s Finance Minister Mehmet Simsek announced that the country’s cryptocurrency asset regulation is in its final stages.
Get off the “grey list”
In a recent interview with state news agency Anadolu, Turkey’s Finance Minister confirmed that the regulatory framework for cryptocurrency assets is in the final stages of development. The Minister added that he was assessing the technical aspects of implementation.
Turkey’s regulatory framework aims to lower the risks of cryptocurrency trading and is expected to help Turkey get off the Financial Action Task Force’s (FATF) so-called “grey list,” Reuters reported. In November 2023, the Turkish government said it was preparing new, stricter cryptocurrency legislation in hopes of convincing the FATF to remove the cryptocurrency from its “grey list.”
“We are therefore taking steps to reduce the risks for parties trading cryptocurrency assets in our country, in line with international practice. This also falls within the scope of FATF’s departure from the gray list,” Minister Simsek said.
FATF’s gray list lists countries that have not taken satisfactory measures to prevent money laundering and terrorist financing. Turkey was added to this list in 2021.
Simsek explained it this way:
“Our main goal in regulating crypto assets is to increase trust in the sector and eliminate the risks that may arise.”
Announcing the strengthened cryptocurrency regulations, Minister Simsek said Turkey was fully compliant with all but one of FATF’s 40 standards. He explained, “The only remaining issue within the scope of technical compliance is work related to cryptocurrency assets.”
Cryptocurrency firm receives license from Turkish capital markets regulator
Turkey’s new regulatory framework requires cryptocurrency platforms to obtain a license from the Turkish Capital Markets Board (CMB). The framework also codifies legal definitions for “crypto-asset”, “crypto-currency wallet”, “crypto-asset service provider”, “crypto-asset storage service” and “crypto-asset buying and selling platform”.
Minister Simsek said:
“Crypto asset trading platforms will be licensed by the Capital Markets Board (CMB) and will be required to have minimum operating standards, including some conditions for founders and managers, organizational obligations and capital requirements.”
The Treasury Secretary provided an example of how the regulations define “crypto assets.”
“…an intangible asset that can be created and stored electronically using distributed ledger technology or similar technologies, distributed over digital networks, and that can express value or rights.”
Turkey ranks top in raw cryptocurrency trading volume
Turkey ranks fourth globally in raw cryptocurrency trading volume, according to Reuters, citing blockchain analytics firm Chainalytic. Last year, Turkey recorded a trading volume of about $170 billion, following the United States, India, and the United Kingdom.
Many Turkish citizens have turned to digital currencies due to years of double-digit inflation rates. Inflation was recorded at around 65% in December.
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.