Turkey Drafts Crypto Regulations to Seek Removal from FATF's 'Gray List'
Summary:
Turkey is working on new crypto-asset regulations to ensure compliance with Financial Action Task Force norms and aims to be removed from its "gray list". The country's Finance Minister Mehmet Simsek cited plans to propose a crypto law in parliament. Also, the 2024 Annual Presidential Program of Turkey aims to finalize crypto asset regulations by year-end 2024. Additionally, Turkey's Central Bank has already run initial trials of its digital currency, the digital lira.
Turkey is said to be developing new laws to manage crypto resources, as part of its efforts to persuade the Financial Action Task Force (FATF), a global body active in fighting fiscal offenses, to remove the country from the "gray list". This list consists of countries failing to take effective measures against money laundering and funding of terrorism. Remarkably, Turkey was put on this gray list by the FATF in 2021. As per a news piece, Turkish Finance Minister Mehmet Simsek, in a parliamentary commission meeting on October 31, noted that a FATF evaluation identified Turkey as complying with all the 40 standards set by the organization except one. Minister Simsek reportedly mentioned that the only issue for technical compliance left involves crypto assets. He signified intentions to table a crypto-assets bill before the parliament, with the aim of leaving the gray list, subject to political factors. No details about the potential legislative modifications were given. The FATF, an institution formed by the G7 leading economies to protect the global financial network, had earlier warned Turkey in 2019 about significant shortcomings, such as the need to strengthen processes for freezing funds linked to terrorism and arms of mass destruction proliferation. That being said, the 2024 Annual Presidential Program of Turkey, declared on October 25 in the Official Gazette of the country, presents the goal to finalize crypto regulations by the close of 2024. Article 400.5 of this extensive 500-page publication details the expected measures to create explicit definitions for crypto resources that could be taxed in the future. The publication aims to legally identify crypto asset providers like crypto exchanges, but does not elaborate about the proposed regulation framework. The Central Bank of Turkey conducted the initial test round of its own digital currency, called the digital lira, successfully by December 2022 and plans to carry on with more tests until 2024.
Published At
11/1/2023 8:51:07 AM
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