Turkey Has Filled Licensing And Taxes With New Crypto Regulations

Turkey is reportedly considering regulations for its crypto market, with a focus on licensing and taxation. The aim is to remove the country from the Financial Action Task Force's (FATF) “grey list”, as Turkey ranks fourth globally in crypto trading.

According to a Reuters report, Bora Erdamar, director of Blockchain Technology Research and Development Center, said that the upcoming crypto regulations will prioritize the implementation of certain levels of authorization to prevent abuse of the system. Erdamar added that the regulations could include factors such as capital adequacy standards, digital security improvements, security services and backup verifications.

Turkey plans to respond by 2021 to issues identified by the Paris-based FAFF, which included the country on a “worrying list” of money laundering and other financial crimes.

Turkey ranks fourth in raw cryptocurrency transaction volumes, with roughly $170 billion last year, behind the US, India and the UK, according to a report by blockchain analytics firm Chinalysis.

Speaking to Cointelegraph, Turkish Crypto Platform Legal Director Mehmet Turkarslan emphasized the need for swift cryptocurrency regulation. He noted the need for a regulatory framework, including licensing of virtual asset service providers, to ensure industry compliance and speedy de-greylisting.

he said:

“As the pioneer of the cryptocurrency industry in Turkey, we have shared our expectations from the regulation and the essentials of the sector with authorized public institutions. We know that it is very important to be removed from the gray list as soon as possible.

Related: Turkish lira to be top crypto trading pair on Binance in September 2023

Countries on the gray list are identified as having insufficient safeguards to prevent money laundering and other financial crimes. They are expected to cooperate with the FATF to address and correct these deficiencies.

In October, Finance Minister Mehmet Şimşek announced that he would accelerate the introduction of new legislation for crypto assets to meet the remaining FATF recommendations, with plans to remove Turkey from the gray list. This situation can damage a country's investment status and reputation.

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