Turkey’s crypto regulation is at the final stage: report

• Turkey’s crypto regulation seeks to align the country’s anti-money laundering laws with the scope of the Financial Action Task Force (FATF) as it looks to get off the “grey list”.
• Minister of Treasury and Finance Mehmet Simsek says the crypto asset regulation framework has reached the technical stage.

Turkey has advanced the legal framework for crypto regulation to the final stage, Mehmet Simsek, the country’s Minister of Treasury and Finance, said on Wednesday.

A report by local media outlet Anadolu Agency states that once finalised, the legislation will see Turkish authorities and regulators apply the clarity the law gives to promote blockchain development and to protect crypto users.

Crypto legislation to align with international practices

According to Simsek, interest in crypto assets has grown significantly across the Turkish population, particularly with regard to buying and selling of crypto assets on cryptocurrency exchanges and trading platforms. 

This, however, has come with various risks, including fraud on some exchanges. The government official also highlighted the potential for manipulation and risks of wild price movements.

The regulatory framework reaching the technical stage means the country is a step closer to aligning its crypto regulatory landscape with international practices.

The legislation will also see Turkey’s crypto regulation align with the international requirements as captured by the Financial Action Task Force (FATF).

Among regulatory requirements to be rolled out with the final implementation will be the obligation for cryptocurrency trading platforms to register for and obtain licences. Simsek also noted that Turkey was looking to align its regulatory rules with international law as applied to founders, and managers. The legal obligations will also extend to capital management.

As CoinJournal highlighted in November last year, Turkey’s crypto asset law is part of the country’s effort to persuade FATF to remove it from the “grey list”.

Added to the list in 2021, Turkey’s appearance means it’s one of the countries currently having an insufficient crackdown on anti-money laundering (AML) and terrorism financing.