April 19, 2024
Turkey's Crypto Market Targets Compliance
Latest Cryptocurrency News

Turkey Aims to Revamp Crypto Market Regulations to Exit FATF Grey List

Turkey is reportedly contemplating measures concerning its crypto market, with a focus on licensing and taxation. The primary goal is to lift the country off the Financial Action Task Force’s (FATF) grey list, given Turkey’s fourth position globally in crypto trading volumes.

As per a Reuters report, Bora Erdamar, a director at the BlockchainIST Center, highlighted that forthcoming crypto regulations will prioritize specific licensing standards to prevent system misuse. Erdamar noted that these regulations could cover criteria like capital adequacy, bolstering digital security, custody services, and reserve verification.

Turkey seeks to address concerns raised by the FATF, which included the country in its list of nations susceptible to financial crimes like money laundering in 2021.

Turkey’s significant standing in raw crypto transaction volumes, approximately $170 billion in the last year, places it fourth globally, trailing behind the United States, India, and the United Kingdom, according to Chainalysis.

Mehmet Türkarslan, legal director of Turkish cryptocurrency platform Paribu, stressed the urgency of swift cryptocurrency regulation. Türkarslan emphasized the need for a regulatory framework, including licensing for virtual asset service providers, to ensure industry compliance and swift removal from the FATF’s grey list.

Türkarslan emphasized the proactive role of their company as pioneers in Turkey’s cryptocurrency industry. They communicated the industry’s expectations and needs for regulations directly to the relevant public authorities. The urgency stems from the critical importance of swiftly getting off the grey list, thus emphasizing their anticipation for cryptocurrency regulation and the licensing of virtual asset service providers.

Countries on the FATF’s grey list lack adequate safeguards against financial crimes like money laundering and are mandated to collaborate with FATF to rectify these deficiencies.

In October, Finance Minister Mehmet Şimşek announced Ankara’s intent to hasten the introduction of new legislation for crypto assets, aiming to fulfill FATF recommendations and thereby remove Turkey from the grey list. This status can significantly affect a country’s investment ratings and reputation.

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