Turkey is approaching the concluding phase of implementing cryptocurrency regulations, marking a pivotal step to exit the Financial Action Task Force’s (FATF) gray list

Turkey is nearing the completion of its cryptocurrency legislation, a crucial step required for its removal from the Financial Action Task Force’s (FATF) gray list, as confirmed by the country’s Finance Minister Mehmet Şimşek during a session of the nation’s planning and budget commission on Tuesday.

Being on the FATF’s gray list indicates the need to address deficiencies in countering money laundering and terrorist financing effectively. Turkey has been part of the gray list since 2021, which has cast a shadow on the Turkish economy, already grappling with high inflation, consequently leading to a surge in cryptocurrency adoption.

According to Şimşek, Turkey has already met 39 of the 40 FATF standards, with the outstanding work being related to the regulation of crypto assets. He explained that the necessary efforts in this regard are in the final stages.

Last week, the Turkish Ministry of Finance announced its intentions to study the regulation of crypto asset service providers, as well as the taxation and definition of virtual assets. However, the latest development signals Turkey’s commitment to introducing cryptocurrency legislation in parliament as the last step to fulfill the FATF’s technical requirements, thereby paving the way for its removal from the gray list.

Şimşek stated, “We will submit a legislative proposal on crypto-assets to the parliament as soon as possible. After that, there will be no reason for Turkey to stay on that gray list, provided there are no other political considerations.”