Turkey is in the final stages of developing comprehensive regulations and laws for the crypto sector. This is to build trust and reduce risks, as Finance Minister Mehmet Şimşek disclosed. The efforts to establish cryptocurrency laws align with Turkey’s broader objective of getting removed from the Financial Action Task Force’s (FATF) gray list, which identifies countries requiring enhancements in anti-money laundering measures.
Urgency of Crypto Legislation
Turkey is currently in the last phase of conducting technical studies to expedite the regulatory process. This is for the formulation of cryptocurrency legislation. It further reflects a commitment to meeting international standards and addressing concerns related to money laundering in cryptocurrency. Finance Minister Şimşek highlighted the government’s dedication to eliminating risks associated with cryptocurrencies and fostering trust in the evolving financial landscape.
Also Read: Turkey Inflation Rises to 61.53%, Below Expectations
Definition of Crypto Assets
The proposed legislation and laws offer a comprehensive definition of crypto assets in Turkey. It classifies them as “intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology, distributed over digital networks, and capable of expressing value or rights.” This inclusive definition aims to encompass the diverse range of crypto assets in the market. It further provides a clear framework for regulatory oversight.
Role of the Capital Markets Board (CMB)
Under the proposed legislation, the Capital Markets Board (CMB) will be responsible for licensing crypto exchanges. Similar to financial institutions, these exchanges will adhere to minimum operating conditions, enhancing transparency and regulatory control in the cryptocurrency sector. Furthermore, the involvement of the CMB underscores the government’s commitment to establishing a robust regulatory framework for the burgeoning cryptocurrency market.
Also Read: Turkey Eyes Crypto Rule Overhaul: Focus on Licensing
Timeline and FATF Evaluation
Şimşek has indicated that the legislative proposals for crypto could be ready by the end of this month. This timeline is crucial as it precedes the FATF evaluation scheduled for February. Turkey’s proactive approach to align its regulatory framework with international standards. This reflects a commitment to fostering a secure and compliant environment for cryptocurrency activities.
Turkey’s imminent finalization of technical studies for cryptocurrency legislation represents a significant stride toward creating a regulatory framework. This further builds trust and mitigates risks in the cryptocurrency sector. As the nation positions itself to meet FATF standards, the proposed legislation, with its comprehensive definition and regulatory oversight mechanisms, reflects a concerted effort to address the evolving challenges within the crypto space. The success of this regulatory initiative could potentially lead to Turkey’s removal from the FATF’s gray list, further solidifying its standing in the global financial community.