Turkey is looking to push forward new legislation to regulate cryptocurrencies in an effort to be removed from the Financial Action Task Force’s (FATF) grey list. According to the emerging legislation drafted by the country’s Ministry of Treasury and Finance, “only authorized entities may engage in virtual assets activities and be able to work as custodians, digital wallets, and other intermediaries.”
The legislation also authorizes the Central Bank of the Republic of Turkey to regulate virtual assets, and all companies and exchanges would be required to obtain a license from the CBRT. Additionally, the legislation includes authority for “law enforcement activities to combat money laundering, terror financing, and other criminal activities…[and] impose obligations on the users of virtual asset services, and on the reporting of suspicious activities, involving virtual assets, to the financial crimes investigation board (MASAK).”
If the legislation passes, it will help Turkey leave the FATF’s grey list, as its current lax regulations do not satisfy the international organization. Turkey is hoping to be removed from the grey list by the end of 2021 and this proposed law could be instrumental in achieving that goal.