Turkey’s Finance Minister, Mehmet Şimşek, has disclosed pivotal insights into the imminent cryptocurrency regulations set to be implemented in the nation. These regulations, aimed at defining crucial crypto concepts, licensing trading platforms, and aligning with Financial Action Task Force (FATF) standards, are nearing finalization. Speaking to the Anadolu Agency on January 10, Minister Şimşek underscored the advanced stage of development of Turkey’s crypto framework, with meticulous evaluation of its technical facets underway.
The primary objective, as articulated by the minister, is to mitigate the risks associated with crypto trading for ordinary investors, thereby adhering to international benchmarks. He emphasized, “We are taking steps to reduce the risks of parties trading with crypto assets in our country, similar to international practices. This is also within the scope of FATF to get out of the gray list.” Under the forthcoming guidelines, crypto platforms will be mandated to secure licenses from Turkey’s Capital Markets Board (CMB).
Furthermore, specific legal definitions will be assigned to critical terminologies such as “crypto assets,” “crypto wallets,” “crypto asset service providers,” “crypto asset custody service,” and “crypto asset buying and selling platforms.” Minister Şimşek illustrated the definition of crypto assets as “intangible assets that can be created and stored electronically using distributed ledger technology or a similar technology, distributed over digital networks, and capable of expressing value or rights.”
However, Minister Şimşek clarified that the regulations would not encompass a distinct tax regime for virtual assets. Turkey’s regulatory deliberations on its crypto market have been protracted, with a focus on licensing and taxation to extricate the country from FATF’s “grey list.” Notably, according to blockchain analytics firm Chainalysis, Turkey ranked fourth globally in raw crypto transaction volumes between July 2022 and June 2023, with an approximate $170 billion in activity, trailing behind the United States, India, and the United Kingdom.