- Turkey is working to improve its regulations against money laundering in the cryptocurrency sector to avoid being on the Financial Action Task Force’s “grey list.”
- The country, which was downgraded to the “grey list” in 2021, faces risks from drug trafficking, migrant smuggling, human trafficking, and fuel smuggling.
- The government is working on a proposal related to crypto assets, which will be presented to parliament soon.
Turkey is taking significant steps to bolster its regulations against money laundering in the realm of cryptocurrencies, with the aim of getting off the Financial Action Task Force’s (FATF) “grey list.” The Finance Minister of Turkey, Mehmet Simsek, has emphasized that enacting new legislation concerning crypto assets is one of the key remaining tasks to achieve full compliance with FATF standards.
In 2021, the FATF downgraded Turkey to its “grey list” due to inadequate measures in combatting money laundering and terrorism financing. In response to this, Simsek has revealed that the government is actively working on a proposal related to crypto assets, which will be presented to the parliament as soon as possible.
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Turkey’s geographical location presents unique challenges, making it susceptible to money laundering risks associated with various criminal activities like drug trafficking, migrant smuggling, human trafficking, and fuel smuggling. The country also faces significant threats related to terrorist financing, both on a national and international scale, as emphasized by the FATF.
This proactive stance highlights the global significance of regulatory measures and international compliance in the world of cryptocurrencies. As Turkey strives to enhance its regulatory framework, it seeks to solidify its standing within the international financial community and ensure adherence to established standards for preventing money laundering and combatting the financing of terrorism.