Turkey is actively revising its crypto-asset regulations as part of a strategic initiative aimed at convincing the Financial Action Task Force (FATF) to remove the nation from its “grey list.” The grey list designation implies that Turkey has not undertaken sufficient measures to combat money laundering and terrorist financing, and the government is determined to address this issue.
In 2021, the FATF downgraded Turkey to the grey list, triggering concerns within the country’s financial sector. Finance Minister Mehmet Simsek, while addressing a parliamentary commission on Tuesday, disclosed the key findings from the FATF’s assessment. The report indicated that Turkey is fully compliant with 39 out of the 40 standards set forth by the international watchdog.
Minister Simsek emphasized the specific issue at hand, stating, “The only remaining challenge with regard to technical compliance pertains to our approach to crypto assets.” He further clarified the government’s resolve, saying, “We are diligently working on a legislative proposal related to crypto assets, which we intend to present to the parliament as expeditiously as possible. Once this legislation is enacted, we anticipate no further impediments for Turkey to be listed in the grey category, provided there are no additional political considerations at play.”
While Minister Simsek did not divulge intricate details of the proposed legal amendments, it is evident that the Turkish government is committed to fulfilling the FATF’s requirements and thereby demonstrating its commitment to combating financial crimes and illicit activities involving crypto assets.
The FATF, an organization established by the G7 group of advanced economies, aims to safeguard the integrity of the global financial system. In 2019, the FATF had cautioned Turkey regarding “significant deficiencies,” highlighting the need to enhance asset freezing measures concerning terrorism and the proliferation of weapons of mass destruction. As Turkey takes strides to fortify its regulatory framework for crypto assets, it seeks to regain its reputation on the international stage and strengthen its position within the financial community.
