• Turkey is preparing a new law on crypto regulation, according to Finance Minister Mehmet Simsek.
• The legislation looks to toughen approach to money laundering and terrorism financing to bring Turkey into compliance with Financial Action Task Force (FATF) requirements.

Turkey is looking to toughen its approach to cryptocurrency regulation, according to a statement made by the country’s finance minister.

Reuters reported on Wednesday, November 1 that Turkey’s quest for new legislation aims at clear regulation for crypto-assets as a route to getting an upgrade in its money laundering and terrorist financing outlook.

Turkey seeks to comply with FATF requirements

Specifically, Turkey hopes the new law will persuade the Financial Action Task Force (FATF) to remove the country from a “grey list” that includes countries whose anti-money laundering (AML) and terrorism financing crackdown is insufficient. 

The global watchdog added Turkey to this list of countries in 2021.

Turkey’s Finance Minister Mehmet Simsek, in an address delivered to a parliamentary commission on October 31, noted that the country was nearing full technical compliance with FATF’s 40 standards. “Work related to crypto assets” was the only issue now.

According to Simsek, the ministry is set to submit to parliament a crypto asset law proposal. Legislative approval of this proposal should see Turkey removed from the “grey list”, unless there are issues – like political considerations.

Reuters says Simsek did not give any other details regarding the expected regulatory step.

The Turkish government’s quest to align with FATF requirements around money laundering and terrorism financing comes amid a wider global push to regulate cryptocurrencies.

That has seen the likes of the EU enacting the Markets in CryptoAsset (MiCA) law and the UK passing into law its Financial Services and Markets Act (FSMA). The comprehensive legislations are expected to bring more clarity to crypto regulation, including stablecoins.