Turkey is reportedly preparing a new law on crypto assets as part of its efforts to tighten regulations on money laundering and terrorism financing. The move is aimed at bringing Turkey into compliance with the requirements of the Financial Action Task Force (FATF).
According to Finance Minister Mehmet Simsek, the new legislation will help Turkey improve its outlook on money laundering and terrorist financing, potentially resulting in the country being removed from the FATF’s “grey list.” The FATF includes countries whose AML and terrorism financing crackdown is considered insufficient.
Turkey, which was added to the grey list in 2021, is nearing full technical compliance with the FATF’s 40 standards. Simsek stated that the only remaining issue is related to crypto assets. The Ministry of Finance plans to submit a proposal for a crypto asset law to the parliament. If approved, this new law could lead to Turkey’s removal from the grey list, unless there are other complications such as political considerations.
The specifics of the expected regulatory measures were not provided by Simsek. However, it is clear that the Turkish government is seeking to align with FATF requirements regarding money laundering and terrorism financing, as part of a global push for greater regulation of cryptocurrencies.
This global regulatory trend has seen the European Union enacting the Markets in CryptoAsset (MiCA) law and the United Kingdom passing its Financial Services and Markets Act (FSMA). These comprehensive legislations are expected to bring more clarity to crypto regulation, including the regulation of stablecoins.
As Turkey moves forward with its proposed crypto asset law, it will be interesting to see how it aligns with international standards and how it impacts the country’s position in the global crypto landscape.