Turkish finance minister signals tighter crypto oversight

Turkey will develop crypto-asset regulations so that FATF removes the country from the ‘grey list’. Reuters reports, citing Finance Minister Mehmet Şimşek.

The FATF includes in the ‘grey list’ countries that have taken insufficient steps to prevent money laundering and terrorist financing. Turkey has been on it since October 2021.

Testifying before a parliamentary committee, Şimşek said Turkey had met all 40 FATF standards, except the one relating to crypto-assets.

“We will present proposals to Parliament. After that, Turkey will have no reason to remain on the list, unless there are other political considerations,” the official said.

Şimşek gave no further details regarding the planned legal changes.

Preparations for this could have begun as early as May 2022, according to Bloomberg.

In 2021, the country faced the bankruptcy of two digital-asset exchanges—Thodex and Vebitcoin. Following that, authorities required platforms to implement mandatory user verification and to disclose transaction information for transactions exceeding $1,200.

In July the Ministry of Finance and the Treasury announced the completion of an industry-regulation bill and its submission to Parliament. The ministry noted that the document does not call for a ban, but emphasises a ‘tighter oversight structure’.

Later, President Recep Tayyip Erdoğan said that authorities are ‘fighting a separate battle’ against cryptocurrencies.