Turkey to Soon Conclude Technical Studies for Crypto Legislation: Finance Minister

Turkey’s Finance Minister, Mehmet Şimşek, has announced that the country is in the “final stage” of completing technical studies for forming crypto regulation. The move is expected to bring licensing and operating standards to trading platforms, and is aimed at mitigating the risks associated with cryptocurrency platforms. This development is expected to have a significant impact on Turkey’s economy and global position.

 

 

Turkey’s draft rules for crypto assets are expected to conclude soon, according to the Finance Minister. The country’s regulatory clarity is expected to increase with the introduction of the new legislation, which will be aimed at mitigating the risks associated with cryptocurrency platforms. The move is expected to bring licensing and operating standards to trading platforms, and is aimed at increasing Turkey’s economic competitiveness in the global market.

 

Key Takeaways

  • Turkey is set to conclude technical studies for crypto legislation soon.
  • The move is aimed at mitigating risks associated with cryptocurrency platforms.
  • The introduction of the new legislation is expected to increase Turkey’s economic competitiveness in the global market.

Legislative Framework and Compliance

 

Developing Crypto Regulations

 

Turkey is currently in the final stages of completing technical studies for developing crypto regulation. The country’s Finance Minister, Mehmet Şimşek, has stated that the draft proposals require crypto firms to obtain licenses from the country’s capital markets regulator. The proposed regulations are aimed at addressing the challenges posed by the use of cryptocurrencies, including money laundering and terrorist financing.

 

Financial Action Task Force Involvement

Turkey’s efforts to develop crypto regulations are also aimed at addressing the concerns of the Financial Action Task Force (FATF). Turkey is currently on the FATF’s gray list, which identifies countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing regimes. The proposed crypto regulations are expected to help Turkey address these deficiencies and be removed from the gray list.

 

Addressing Money Laundering and Terrorist Financing

The proposed crypto regulations in Turkey are part of a broader effort to address the risks of money laundering and terrorist financing associated with the use of cryptocurrencies. The regulations are expected to require crypto firms to comply with anti-money laundering and counter-terrorist financing standards, including customer due diligence and transaction monitoring.

In addition to the proposed regulations, Turkey has also taken other steps to address the risks of financial crime associated with cryptocurrencies. For example, in April 2021, the Central Bank of the Republic of Turkey (CBRT) issued a regulation prohibiting the use of cryptocurrencies for payments. The CBRT has also warned that cryptocurrencies are not subject to any regulation or supervision by financial watchdogs.

Overall, the proposed crypto regulations in Turkey are aimed at promoting compliance with international standards for anti-money laundering and counter-terrorist financing. The regulations are expected to provide a clear legal framework for the use of cryptocurrencies and promote the development of the crypto industry in Turkey.

 

Impact on Turkey’s Economy and Global Position

 

Economic Considerations and Trust

The recent announcement by the Finance Minister of Turkey that the country will conclude technical studies for crypto legislation soon has important implications for the Turkish economy. Turkey is currently facing serious shortcomings in its economy, including double-digit inflation, and legal changes are needed to address these issues. The regulation of crypto assets is seen as a potential solution to these problems.

The regulation of crypto assets will help to increase trust in the Turkish financial system, which has been a concern for investors in recent years. Turkey’s standing in the global financial system has been negatively affected by its inclusion in the gray list of the Paris-based financial watchdog, the Financial Action Task Force (FATF). The country’s inclusion in the gray list is due to its failure to address financial crime and terrorism financing.

The regulation of crypto assets will help to address these concerns and increase trust in Turkey’s financial system. This, in turn, will help to attract more investment to the country and boost economic growth.

 

Turkey’s Standing in the Global Financial System

Turkey’s inclusion in the gray list of the FATF has had a negative impact on its standing in the global financial system. The country’s failure to address financial crime and terrorism financing has led to its inclusion in the list. This has made it difficult for Turkey to access international financial markets and has hurt its reputation as a reliable financial center.

The regulation of crypto assets will help to address these concerns and improve Turkey’s standing in the global financial system. This will help to attract more investment to the country and boost economic growth. The G7 group of nations has recently called for increased regulation of crypto assets, and Turkey’s move to regulate these assets will help to bring it in line with the recommendations of the G7 group.

In conclusion, the regulation of crypto assets in Turkey will have important implications for the country’s economy and its standing in the global financial system. It will help to increase trust in the Turkish financial system, attract more investment to the country, and boost economic growth.

By Jastra Kranjec

Jastra is an author at CryptoPresales. Over the years, she has worked in different fields of journalism and public relations, including politics, economy, crypto, and financial markets.