Turkey Aims to Regulate Crypto Market to Exit FATF Grey List

Turkey Aims to Regulate Crypto Market to Exit FATF Grey List

Crypto News – Bora Erdamar, a prominent figure associated with the BlockchainIST Center, has emphasized the forthcoming cryptocurrency regulations, highlighting their focus on implementing specific licensing standards to prevent potential system abuse.

Turkey is currently contemplating regulatory measures for its cryptocurrency market, with a primary emphasis on licensing and taxation. The primary goal behind these regulations is to remove Turkey from the Financial Action Task Force (FATF) “grey list.” Turkey stands as the fourth-largest cryptocurrency trading nation globally, making this regulatory move crucial.

As reported by Reuters, Bora Erdamar, a director at the BlockchainIST Center, noted that the impending crypto regulations will give priority to the implementation of precise licensing standards to safeguard against potential system abuse. These regulations may encompass various aspects, including capital adequacy standards, bolstered digital security measures, custody services improvements, and the verification of reserves.

Turkey’s objective extends to addressing concerns raised by the FATF, which, in 2021, included the country in its “grey list” of nations susceptible to money laundering and other financial crimes.

According to a report from blockchain analytics firm Chainalysis, Turkey ranked fourth globally in terms of raw cryptocurrency transaction volumes, with a total of approximately $170 billion over the past year, trailing only the United States, India, and the United Kingdom.

In a conversation with Cointelegraph, Mehmet Türkarslan, the legal director of the Turkish cryptocurrency platform Paribu, underscored the urgency of swift cryptocurrency regulation. He emphasized the need for a comprehensive regulatory framework that includes licensing for virtual asset service providers, ensuring industry compliance, and expeditiously removing Turkey from the FATF’s “grey list.”

Türkarslan stated:

“As pioneers in the Turkish cryptocurrency industry, we have shared our expectations and the sector’s requirements for regulation with the relevant public authorities. We understand the critical importance of being delisted from the ‘grey list’ as soon as possible, and thus, we eagerly anticipate cryptocurrency regulation and the accompanying licensing for virtual asset service providers.”

Countries placed on the FATF’s “grey list” are identified as having insufficient safeguards against money laundering and other financial crimes. They are obligated to collaborate with the FATF to address and rectify these deficiencies.

In October, Turkey’s Finance Minister, Mehmet Şimşek, announced an expedited introduction of new legislation for crypto assets to fulfill the remaining FATF recommendations, with the ultimate goal of removing Turkey from the “grey list.” This status can significantly impact a country’s investment ratings and reputation.