In a bid to lose its Financial Action Task Force (FATF) “grey list” status, Turkey is preparing to introduce new legislation on crypto-assets.
The move is part of an effort to demonstrate their commitment to preventing money laundering and terrorist financing.
Finance Minister Mehmet Simsek, speaking to a parliamentary committee, revealed that Turkey fully complies with all but one of the 40 FATF standards. According to Simsek, the remaining concern is in the area of crypto assets.
The FATF, a body created by G7 economies, had already warned Turkey of significant shortcomings, notably in improving measures to freeze assets associated with terrorism and arms proliferation in 2019.
To address these concerns, Turkey is taking proactive steps to strengthen its regulatory framework regarding crypto assets. The proposed law is expected to address the intricacies of this digital financial landscape, aligning Turkey with international standards and best practices.
Being placed on the FATF “grey list” has implications not only for the Turkish financial sector but also for its global standing. This signals to the international community that there are areas that need to be strengthened in terms of combating financial crime.
The impending cryptoasset legislation is poised to not only elevate Turkey’s position on the international stage, but also pave the way for a more robust and secure financial ecosystem within the country. By aligning with the FATF recommendations, Turkey is positioning itself as a responsible actor in the global financial landscape.
Turkey’s decision to strengthen regulations on crypto assets is an important step towards ensuring…