Regulation
New Turkish crypto bill in spotlight, is exit from FATF gray list possible?
Turkish President Tayyip Erdogan’s ruling party has presented a bill to Parliament making licensing and registration of people mandatory. crypto assets service suppliers. The move aims to improve Turkey’s standing with the Financial Action Task Force (FATF), a global financial watchdog.
New Crypto Invoice Components from Türkiye
Proposal crypto regulation, presented by the AK Party, stipulates that cryptocurrency trading platforms and associated companies must obtain licenses from the Capital Markets Board of Turkey. “The law regulates crypto asset service providers, the activities of crypto asset platforms, the storage of crypto assets and the purchase, sale and transfer transactions of crypto assets that persons residing in Turkey can carry out,” the draft states.
In October 2021, the FATF downgraded Turkey to its gray list due to insufficient supervision of sectors vulnerable to money laundering and the financing of groups on the United Nations sanctions list. Countries on this list are subject to increased monitoring and are required to work closely with the FATF to address their deficiencies.
The bill sets out comprehensive requirements for the management of platforms, the services that platforms can offer as well as financial and operational standards. It highlights the need for stricter regulation of the crypto sector to mitigate risks, especially in light of recent bankruptcies of small trading platforms that have left many people without access to their funds.
Türkiye The capital Ankara has been developing legislation on crypto assets for more than two years, motivated by the desire to regulate this booming sector and protect investors. The new regulations are seen as crucial to restoring confidence in the market and preventing future financial losses for consumers.
Read also: Pink Drainer Shuts Down After $75 Million Crypto Theft, Attacking 20,000 Victims
FATF meets Turkish officials
According to the draft, the Capital Markets Council will be empowered to create secondary regulations and establish procedural guidelines for service providers and crypto asset transactions. This includes monitoring compliance with new standards and taking enforcement action against non-compliant entities.
Earlier this month, sources told Reuters that a FATF team had met with Turkish officials in preparation for an upcoming report on Turkey, expected in June. The government anticipates a positive assessment and hopes for an upgrade from the FATF following the implementation of these new regulations.
In addition to addressing FATF Concerns, the bill aims to improve Turkey’s financial infrastructure and attract more investments into the crypto sector by creating a more secure and regulated environment. By establishing clear rules and standards, the government seeks to provide a stable foundation for the growth of crypto trade and services in the country.
The introduction of this bill marks an important step in Turkey’s efforts to exit the FATF gray list and re-establish itself as a compliant and trusted member of the global financial community. Through these measures, Turkey intends to demonstrate its commitment to the fight against money laundering and the financing of terrorism. It therefore seeks to improve its international financial reputation.
Read also: Pro-XRP lawyer John Deaton criticizes Warren and the SEC over crypto regulation