Turkey nears finalization of crypto regulation rules
Turkey nears finalization of crypto regulation rules
Turkey intends to change the situation in the crypto industry and get off the Financial Action Task Force's (FATF) "grey list," which indicates problems in the country in controlling financial activities and combating money laundering and terrorist financing.
To this end, Turkish authorities are paying increased attention to crypto regulation and plan to introduce legislation on crypto regulation, license trading platforms, and comply with FATF standards.
Turkish Finance Minister Mehmet Şimşek announced the measures to be taken to comply with the regulations and standards of the anti-money laundering program. The government will legally define critical cryptocurrency terms and allow only licensed cryptocurrency companies to operate in the country, Cointelegraph reported.
Şimşek said the development of rules for Turkey's cryptocurrency ecosystem is currently in the final stages, with experts assessing the prospects for implementing technical aspects. Turkey ranks fourth in the world in terms of the volume of unprocessed cryptocurrency transactions, which amounts to around $170 billion, after the United States, India, and the United Kingdom.
The Finance Minister highlighted Turkey's plans to reduce risks for private traders and investors in cryptocurrency trading and bring it in line with international standards.
He said, "The government is taking important measures to reduce risks for all participants in the crypto market, similar to international practice. Such tasks were set by FATF to get the country off the grey list."
According to the updated requirements, cryptocurrencies will have to obtain a license from the Capital Markets Board of Turkey (CMB) in order to provide services in the country.
For this purpose, the CMB will provide legal definitions for the following terms: crypto asset, crypto wallet, crypto asset purchase and exchange platform, crypto asset service provider, and crypto asset custody service.
Mehmet Şimşek also published a developed definition for the term "cryptoassets": "They are intangible assets that can be created and stored electronically using distributed ledger technology or similar technology, distributed over digital networks, and capable of expressing value or rights."
The Turkish authorities intend to implement the rules soon and remove the country from the FATF's grey list.
Related: India has blocked access to some crypto apps in Apple App Store
