Turkey Aims to Boost Crypto Standing with New Regulations

Legalization and taxation are reportedly the focal points of Turkey’s deliberations on crypto market regulations.

As Turkey ranks fourth globally in cryptocurrency trading, the objective is to have the nation removed from the “grey list” of the Financial Action Task Force (FATF).

The forthcoming crypto regulations, according to a Reuters report, will prioritize the implementation of specific licensing standards to prevent system abuse, according to Bora Erdamar, a director at the BlockchainIST Center, a research and development center for blockchain technology.

Erdamar further stated that the regulations could potentially include elements like verification of reserves, capital adequacy standards, and protection enhancements in the digital realm.

The FATF, headquartered in Paris, included Turkey on its “gry list” of countries prone to money laundering and other financial offenses in 2021.

In addition, Turkey intends to address concerns raised by the organization. Chainalysis, a firm that analyzes blockchain technology, rated Turkey fourth worldwide in terms of raw crypto transaction volumes over the past year, with an estimated $170 billion.

The United States, India, and the United Kingdom ranked higher. The legal director of the Turkish cryptocurrency platform Paribu, Mehmet Türkarslan, emphasized the immediate need for regulation of cryptocurrencies.

To ensure industry compliance and expeditious removal from the gray list, he emphasized the need for a regulatory framework that encompasses licensing for virtual asset service providers.

As inadequately protected against money laundering and other financial offenses, nations that are included in the gray list are identified. To acknowledge and correct these shortcomings, they are obligated to engage in cooperation with FATF.

To satisfy the remaining FATF recommendation and eliminate Turkey from the gray list, Finance Minister Mehmet Imşek declared in October that Ankara would expedite the introduction of new legislation about crypto assets.

Investment ratings and the reputation of a nation may be affected by this status.