News
Turkey’s New Crypto Law in the Spotlight, Is Exiting the FATF Gray List Possible?
Turkish President Tayyip Erdogan’s ruling party has presented a bill to parliament mandating licensing and registration for crypto asset service suppliers. This measure aims to improve Turkey’s standing with the Financial Action Task Force (FATF), a global financial watchdog.
New Components of Türkiye’s Crypto Bill
The proposed cryptographic regulation, introduced by the AK Party, stipulates that cryptocurrency trading platforms and related companies must obtain licenses from the Turkish Capital Market Board. “The law regulates crypto-asset service providers, the activities of crypto-asset platforms, the storage of crypto-assets and the purchase, sale and transfer transactions of crypto-assets that people residing in Turkey can make,” the draft states.
In October 2021, the FATF declassified Turkey from its gray list due to insufficient oversight of sectors vulnerable to money laundering and financing of groups on the United Nations sanctions list. Countries on this list face increased monitoring and are required to work closely with the FATF to address deficiencies.
The draft law outlines comprehensive requirements for platform management, the services that platforms can offer, and financial and operational standards. It emphasizes the need for stricter regulation of the crypto sector to mitigate risks, especially in light of recent bankruptcies of smaller trading platforms that have left many people without access to their funds.
Peru The capital Ankara has been developing legislation on crypto assets for more than two years, driven by a desire to regulate the burgeoning sector and protect investors. The new regulations are considered crucial to restoring confidence in the market and preventing future financial losses for consumers.
Read too: Pink Drainer Shuts Down After $75M Crypto Theft, Attacking 20K Victims
FATF meets with Turkish authorities
According to the project, the Capital Markets Council will have powers to create secondary regulations and establish procedural guidelines for service providers and cryptoactive transactions. This includes monitoring compliance with new standards and enforcement actions against non-compliant entities.
Earlier this month, sources told Reuters that a FATF team met with Turkish officials in preparation for an upcoming report on Turkey, expected in June. The government anticipates a positive assessment and expects an update from the FATF following the implementation of these new regulations.
In addition to addressing FATF concerns, the bill aims to improve Turkey’s financial infrastructure and attract more investment into the crypto sector by creating a safer and more regulated environment. By establishing clear rules and standards, the government seeks to provide a stable foundation for the growth of crypto trading and services in the country.
The introduction of this bill marks a significant step in Turkey’s efforts to exit the FATF gray list and re-establish itself as a compliant and trustworthy member of the global financial community. With these measures, Turkey intends to demonstrate its commitment to combating money laundering and terrorist financing. Therefore, it seeks to improve its international financial reputation.
Read too: Pro-XRP Lawyer John Deaton Slams Warren and SEC Over Crypto Regulation