Turkey Introduces New Crypto Regulations to Tackle FATF Concerns and Enhance Market Oversight

Turkey Introduces New Crypto Regulations to Tackle FATF Concerns and Enhance Market Oversight

Crypto News – Turkey, ranked as the fourth-largest country in terms of cryptocurrency trading, has introduced a set of new regulatory policies with a strong focus on licensing and taxation. This move comes as Turkey seeks to address concerns from the Financial Action Task Force (FATF) and secure its removal from the FATF’s “grey list.”

Bora Erdamar, the Director at BlockchainIST Center, a research and development hub specializing in blockchain technology, emphasized the need for fresh regulatory standards in Turkey’s crypto markets to prevent potential abuses within the system. He emphasized that establishing specific licensing criteria would be among the top priorities in these new regulations.

Erdamar also disclosed that Turkey is considering additional regulatory measures, including requirements related to capital, digital security enhancements, and custody services, among other critical aspects.

Mucahit Donmez, the CEO of Binance Turkey, highlighted the current lack of regulatory oversight in the country, especially in light of the growing interest in cryptocurrencies. He emphasized the sectors that require more stringent regulation, stating, “We believe that ensuring the security of users’ assets and establishing certain criteria such as minimum capital requirements, listings, custody, and the prerequisites for obtaining operational licenses will have a positive impact on the sector.”

According to a report by Chainalysis, Turkey ranked fourth in terms of raw cryptocurrency transaction volumes, reaching a total of $170 billion last year, trailing behind the United States, India, and the United Kingdom. Furthermore, in the Global Crypto Adoption Index 2023 by Chainalysis, Turkey secured the ninth position in terms of cryptocurrency adoption.

Despite these promising statistics, the international financial watchdog FATF included Turkey, along with the United Arab Emirates, South Africa, and over 20 other nations, in its scrutiny due to concerns regarding their susceptibility to money laundering activities. This has prompted Turkey to take proactive steps towards establishing a robust regulatory framework for its cryptocurrency industry.