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Turkey Confirms Its Draft Rules for Crypto Assets Are in the Final Stages

Turkey Confirms Its Draft Rules for Crypto Assets Are in the Final Stages

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The Turkish government said its crypto asset regulation, set to introduce licensing and operating standards to trading platforms, is in the “final stage” of completing technical studies. 

Turkey’s Finance Minister Mehmet Simsek announced that the country’s crypto asset regulation is at the final stage. 

Getting Off the “Grey List”

In a recent interview with state-owned news agency Anadolu, Turkey’s Minister of Finance confirmed that the regulatory framework for crypto assets is in the final stages of development. The minister added that the technical aspects of its implementation are being assessed. 

Turkey’s regulatory framework is aimed at lowering the risk of crypto trading and is expected to help Turkey be taken off the Financial Action Task Force’s (FATF) so-called “grey list,” Reuters reports. In November 2023, the Turkish government said it is preparing new, stricter crypto legislation to convince the FATF to remove it from its “grey list.”

“Therefore, we are taking steps to reduce the risks of parties trading with crypto assets in our country, similar to international practices. This is also within the scope of FATF to get out of the grey list,” Minister Simsek said. 

The FATF’s grey list lists countries that have not taken satisfactory action to prevent money laundering and terrorist financing. Turkey was added to this list in 2021.

Simsek explained,

“Our main goal with crypto asset regulation is to increase trust in this area and eliminate the risks that may arise.” 

Minister Simsek said Turkey is fully compliant with all but one of the FATF’s 40 standards when announcing its enhanced crypto regulations. He explained, “The only remaining issue within the scope of technical compliance is the work related to crypto assets.” 

Crypto Firms to Obtain Licenses from Turkish Capital Markets Regulator

Turkey’s new regulatory framework requires crypto platforms to obtain licenses from Turkey’s Capital Market Board (CMB). The framework also codifies legal definitions of “crypto assets,” “crypto wallets,” “crypto asset service providers,” “crypto asset custody service,” and “crypto asset buying and selling platforms.” 

Minister Simsek is quoted as saying:

Crypto asset trading platforms will be licensed by the Capital Markets Board (CMB), and minimum operating standards will be required ... including some conditions for founders and managers, organizational obligations, capital requirements.” 

The finance minister gave an example of how the regulations define “crypto assets.”

“…intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology, distributed over digital networks, and capable of expressing value or rights.”

Turkey Ranks High in Raw Crypto Transaction Volumes

According to Reuters, citing blockchain analytics firm Chainalysis, Turkey ranks fourth globally in raw crypto transaction volumes. Over the last year, Turkey recorded an estimated $170 billion in transaction volumes after the US, India and the UK.

Many Turkish citizens have turned to digital currencies owing to years of double-digit inflation rates. Inflation was recorded at around 65% in December. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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