Turkey Plans Crypto Regulations to Exit International Watchdog's 'Gray List'
Summary:
Turkey is reportedly planning to regulate its cryptocurrency market, focusing on licensing and taxation, to remove itself from the international financial crime watchdog’s “gray list.” The rules under consideration will include capital adequacy norms, digital safety enhancements, and reserves verification processes. The need was highlighted by Mehmet Türkarslan, Legal Director of Turkish cryptocurrency platform, Paribu, who emphasized quick regulations for virtual asset service providers for industry compliance and delisting from the gray list. Acknowledging the urgency, Turkish Finance Minister Mehmet Simsek pledged to fast-track introducing new legislation for crypto-assets.
Turkey is contemplating establishing rules for its cryptocurrency industry, emphasizing certification and taxation. The objective is to extricate the nation from the global financial crimes body's "gray list," as Turkey holds the fourth rank worldwide in terms of cryptocurrency transactions. As per a report from Reuters, Bora Erdamar, who belongs to the BlockchainIST Center, stated that imminent crypto rules would stress introducing requisite licensing norms to counter system misuse. The rules under consideration could cover areas such as capital adequacy norms, improvements in digital safety, custody services, and reserves verification processes.
Turkey's target is also to address the concerns raised by the Financial Action Task Force (FATF), a financial guard dog based in Paris, which placed Turkey on its "gray list" in 2021. This list consists of nations that are at risk of money laundering and other such financial crimes. Turkey was the fourth highest nation regarding crypto transaction volumes, recording roughly $170 billion over the past year. This ranking places Turkey behind the United States, India, and the United Kingdom, as per a report from the blockchain analytics company Chainalysis.
In a conversation with Cointelegraph, Mehmet Türkarslan, the Legal Director of the Turkish crypto platform Paribu, highlighted the urgency for cryptocurrency regulation. Türkarslan articulated the need for a regulatory setup, inclusive of licensing for virtual asset service providers. This step would enable the industry to comply quickly and facilitate removal from the gray list. He added that the forerunners in Turkey's crypto industry have shared their expectations and requirements from the forthcoming rules with the competent authorities. These steps aim to help delist Turkey from the gray list as soon as possible.
Countries featured on the gray list are identified as lacking the necessary safeguards to tackle money laundering and other financial crimes. These countries are expected to collaborate with the FATF to rectify these issues. Finance Minister Mehmet Simsek declared in October that Ankara would hasten the introduction of new legislation for crypto-assets, targeting the fulfillment of the outstanding FATF recommendation and striving for Turkey's extrication from the gray list. This status significantly influences a country's investment ratings and reputation.
Published At
11/16/2023 9:07:10 AM
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