Turkish officials have confirmed plans to implement a comprehensive crypto market regulation effective 2024. It will target crypto licensing and taxation.
They seek to rectify concerns raised by the Financial Action Task Force (FATF) and shed its ‘grey-list’ status, Turkey aims to strengthen its position as the fourth global leader in crypto transaction volumes, following the US, India, and the UK.
While addressing a parliamentary commission on Oct 31, 2023, Turkish Finance Minister Mehmet Simsek stated, “We will submit a law proposal on crypto-assets to the parliament as soon as possible.” He emphasized the urgency to address the remaining technical compliance issues.
Bora Erdamar from BlockchainIST Center highlighted that the upcoming regulation would prioritize introducing “certain licensing standards” to curb system abuse.
The focus extends to capital adequacy requirements, bolstered digital security, custody services, and proof of reserves to fortify the crypto ecosystem against potential risks.
The country aims to tap into its blockchain potential by tackling FATF concerns about money laundering risks,. Emphasizing the importance of a reasonable taxation policy, Erdamar noted, “A reasonable taxation policy, that will not scare off investors, will strengthen and reinforce trust for the sector.”
Turkey is gearing up to unveil its crypto regulatory framework, the nation sets the stage for a transformative approach, positioning itself as a key player in the evolving global crypto landscape.