Turkey is On The Verge of Forming Crypto Regulation, Technical Studies Are Nearing Their End

Turkey’s Finance Minister Mehmet Şimşek spoke to Coindesk Turkey and stated that the country is in the final stages of its legislative process. According to Şimşek, the legislative proposals will be ready this month.

The Goal is To Eliminate All Risks, According to Şimşek

While speaking about the legalization of crypto assets, Şimşek stated that the goal of the legislation is to “increase trust in this area” and take out all risks that may arise. He also shared some insights into what the legislation will include.

According to the Finance Minister, there will be a broad definition of crypto assets. They will be described as “intangible assets” that will be stored electronically and have the capability of “expressing value or rights.”

Crypto exchanges will be licensed and regulated by Turkey’s Capital Markets Board and their operating conditions will be similar to the financial institutions in the country.

Turkey has been speeding up the crypto laws as a way to get out of the grey zone of the Financial Action Task Force.  The grey list includes countries where measures related to anti-money laundering need improvement. The next evaluation of this agency is scheduled in February and the minister is confident that the crypto legislation will be ready way before it.

Turkey Has Been on FATF’s Grey List Since 2021

The issues that Turkey has with anti-money laundering measures are not new. The country has been on FATF’s grey list since 2021. Back in November, Şimşek spoke on the matter and said that at the time, Turkey had compiled with 39 out of the 40 standards by the FATF.

He believes that the newly-proposed laws on crypto assets will fulfil the final standard and thus, take Turkey out of the grey list.

When he was asked about potential taxes, Şimşek said that the first legislation would not focus on the process of taxing crypto assets. Instead, that issue will be studied separately. In terms of the available cryptocurrencies, the minister said that they will not be “interfering with the crypto assets that will be listed on the platforms.”

Additionally, the CMB will have the authority to “regulate additional principles” and “intervene when necessary in this regard.”

Finally, Şimşek concluded by saying that the Ministry aims to pave the way for blockchain and crypto development and create a stable ecosystem.

Not All Countries Are Keen on Regulating Cryptocurrencies

Apart from Turkey, the US is also on the radar at the moment. With the recent approval of Bitcoin ETFs, there is speculation of what next.

However, not all governments are keen on regulating or dealing with cryptocurrencies. Just recently, the Indian government served showcause notices to several exchanges, including Binance, MEXC Global, Bitfinex, Kraken and Gate.io.

As a result, Apple has removed these exchanges from its India store. According to the Financial Intelligence Unit, authorities acted under the Prevention of Money Laundering Act. The government blocked these exchanges under suspicion that the entities were “operating illegally without complying.”

The process is still ongoing as it requires a lot of paperwork. At the moment, the Indian government and Financial Intelligence United have not issued an official statement regarding the showcause notices.