Turkey is set to strengthen its regulation of the cryptocurrency sector in order to be removed from the Financial Action Task Force’s (FATF) “grey list,” according to report from Reuters
The new regulatory regime will likely focus on licensing standards to prevent abuse, as well as potential capital adequacy requirements and compliance measures for crypto custody services. However, the changes are not expected to take effect until 2024 at the earliest, as the Turkish government had previously stated that crypto regulation would be on next year’s agenda.
Furthermore, Turkey has been considering increasing oversight of the crypto sector since at least May 2022.
In early November 2023, Turkey’s Finance Minister Mehmet Şimşek said Turkey is in the “final stage” of meeting FATF standards, having complied with 39 of 40 so far. Turkey has been on the FATF grey list since 2021, hurting confidence in its fragile economy. With high inflation, cryptocurrencies have become an alternative financial refuge for many Turks.