- Turkey is on the verge of introducing cryptocurrency legislation to its parliament, marking a critical step towards exiting the Financial Action Task Force’s (FATF) grey list.
- The country has been under the grey list since 2021, which has affected its economy, making cryptocurrency an increasingly popular alternative.
Turkey finds itself at a pivotal juncture, with its finance minister, Mehmet Şimşek, declaring that the country is in the “final stage” of introducing cryptocurrency legislation to parliament. This decisive move is seen as the last necessary step for Turkey to extricate itself from the Financial Action Task Force’s (FATF) grey list, a status that has been looming over the nation since 2021.
Addressing the Grey List: A Financial Turning Point
The grey list from FATF serves as a warning, urging countries to address strategic deficiencies in their systems to counter money laundering and terrorist financing. Turkey’s presence on this list has shaken confidence in its economy, already beleaguered by high inflation. Cryptocurrency has emerged as a popular alternative in these trying times, providing a financial lifeline to many.
Şimşek has highlighted Turkey’s commitment to aligning with global standards, noting that the country has successfully complied with 39 out of 40 FATF standards. “Our necessary efforts in this regard have reached the final stage,” he assured, indicating a proactive stance towards comprehensive crypto regulation.
Just last week, Turkey’s finance ministry underscored its dedication to this cause, announcing a comprehensive study aimed at regulating crypto asset service providers and establishing a clear tax and definition framework for virtual assets. This latest announcement from Şimşek reaffirms the country’s determination to bring crypto legislation before parliament, erasing any remaining doubts about its commitment to meeting FATF’s technical requirements.
“We will submit a law proposal on crypto-assets to the parliament as soon as possible,”
Şimşek affirmed, expressing confidence that once this is achieved, there will be no grounds for keeping Turkey on the grey list, barring any unforeseen political considerations.
As Turkey takes these critical steps towards legislative clarity and regulatory compliance, the world watches closely, recognizing the potential for cryptocurrency to play a significant role in the nation’s financial future.