Türkiye Seeks Exit from FATF ‘Grey List’ by Revising Crypto Regulations after Achieving Compliance in 39 of 40 Standards

Türkiye Seeks Exit from FATF ‘Grey List’ by Revising Crypto Regulations after Achieving Compliance in 39 of 40 Standards

Crypto News – In a significant maneuver, Türkiye is proactively revising its cryptocurrency regulations in a bid to persuade the Financial Action Task Force (FATF) to remove it from the ‘grey list.’ This strategic move follows a recent FATF report acknowledging Türkiye’s full compliance with 39 of the 40 international standards set by the global financial watchdog. The solitary area of concern highlighted in the report pertains to crypto-assets.

As reported by Reuters, Finance Minister Mehmet Simsek has announced plans to soon present a legislative proposal to the Turkish parliament, aiming to cover regulations concerning crypto-assets.

Türkiye’s Focused Approach to Crypto Legislation and the Quest to Exit the ‘Grey List’ Türkiye has been on the FATF’s ‘grey list’ since 2021, primarily due to issues surrounding money laundering and terrorist financing. This designation has cast a shadow on the country’s reputation and economic prospects.

In response, Türkiye has embarked on an extensive journey to align itself with FATF standards, with a specific emphasis on the regulatory framework for cryptocurrencies. Notably, Minister Simsek emphasized that Türkiye has met 39 out of the 40 FATF standards. The remaining challenge centers on the comprehensive regulation of crypto-assets, which is currently not fully addressed within the existing legislative framework.

Turkish authorities have been working tirelessly to fine-tune their approach to cryptocurrency regulation. A recent statement from the Ministry of Finance indicates plans to conduct studies related to crypto asset service providers, taxation policies, and the classification of virtual assets. However, the pivotal step forward is the drafting of dedicated legislation specifically targeting crypto-assets, which will be presented to the parliament for approval.

Elevating Türkiye’s Global Reputation Minister Simsek’s announcement underscores the urgency with which Türkiye is addressing this critical issue. Once the proposed legislation is introduced to the parliament and gains approval, it is anticipated that Türkiye’s concerns regarding technical compliance will be effectively resolved.

This represents a significant milestone in Türkiye’s approach to cryptocurrencies and is a crucial step towards shedding its ‘grey list’ status while reinstating trust in the Turkish economy.

It is noteworthy that the FATF, established by the G7 group of advanced economies, aims to safeguard the global financial system against money laundering and terrorist financing. A successful transition from the ‘grey list’ to full compliance would help Türkiye regain trust within the international financial community and have a positive impact on the cryptocurrency landscape in the country.