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Turkey’s Regulatory Authorities stated they will develop rigid regulations for crypto service platforms focusing on licensing and taxation. As the world’s fourth largest crypto trading country, they strive to get off the international Financial Action Task Force (FATF) grey list.
Turkey’s new rules will safeguard crypto businesses from money laundering and terrorist financing. According to the financial sector, these latest obligations stress licensing and taxation, including measures that will comply with the international AML standards to combat financial crimes as well as geting off the grey list. Turkey’s government claimed last month to create a secure environment for the crypto-booming industry, as it supports the fight against inflation, and the country’s currency, the Lira, drives demand for alternative assets to raise the value and boost the economy. These regulations also assist Turkey in convincing the international watchdog, FATF, which has added the country to the increased risk monitoring regime because of inadequate measures in combating money laundering and terrorist financing.
The director at BlockchainIST, a research and development centre for blockchain technology, Bora Erdamar, stated, “Introducing certain licensing standards will be one of the top priorities in the new regulation. It will prevent abuse of the system.” He added the regulations would include adequate measurements to improve the security of the virtual assets and to detect the money trail of crypto investors with proof of reserves.
According to a survey by blockchain analytics firm Chainalysis, Turkey is ranked fourth internationally in gross crypto transaction volumes over the previous year, coming in behind the United States, India, and the United Kingdom with almost $170 billion. This shows Turkey’s investor interest in crypto trading and youth’s desire to explore new technology, but the country must design a robust crypto verification system to keep the integrity of the global economy. Erdamar added, “Turkey has great potential in blockchain technology and crypto assets. A reasonable taxation policy that will not scare off investors will strengthen and reinforce trust in the sector.”
Previously, in October, Turkey’s Finance Minister, Mehmet Simsek, said they would unveil the latest regulations to supervise crypto transactions according to FATF’s latest recommendations. These will help a country withdraw from the grey list and improve its global reputation, as well as bring international investors to the country, which leads to an economic boost. FATF stated in July that Turkey’s regulatory authorities’ lack of licensing and registration requirements may make it difficult for the country to identify and supervise Virtual Asset Service Providers (VASPs) and their shareholders.