Turkey is to tighten its oversight of the cryptocurrency industry in order to be taken off the Financial Action Task Force’s (FATF) “grey list,” a Reuters report states.
Along with possible capital adequacy criteria and compliance procedures for crypto custody services, the new regulatory system is expected to concentrate on licensing standards to avoid abuse. The Turkish government had previously said that cryptocurrency regulation will be on the agenda for the next year, thus it is anticipated that the reforms won’t go into force until 2024 at the earliest.
Moreover, since at least May 2022, when President Recep Tayyip Erdogan’s ruling AK Party suggested mandating at least 100 million liras (about $3.4 million) in capital for cryptocurrency enterprises, Turkey has been debating stepping up regulation of the industry.
Turkey’s Finance Minister, Mehmet Şimşek, stated at the beginning of November 2023 that the country is nearing the “final stage” of FATF compliance, having met 39 of 40 requirements thus far. Since 2021, Turkey has been included on the FATF’s gray list, which has eroded trust in its already shaky economy. Due to the high rate of inflation, many Turks are turning to cryptocurrencies as a substitute source of financial security.