The Ak Parti will introduce a cryptocurrency legislation proposal to the Turkish Grand National Assembly (TBMM) today. Mehmet Şimşek, the Minister of Treasury and Finance, disclosed that this proposal aims to legally define cryptocurrencies for the first time. Şimşek highlighted that this regulation would fulfill the final condition for Turkey to be removed from the Financial Action Task Force’s (FATF) grey list.
What Are the Details of the New Cryptocurrency Law?
Ak Parti Group President Abdullah Güler will reveal the specifics of the “Proposal for Amendment to the Capital Markets Law” at a press conference at 15:30 today. Güler will elaborate on the content and objectives of the proposal, providing the public with comprehensive information on how the legislation plans to legally define and regulate cryptocurrencies.
Cryptocurrencies will be categorized as “intangible assets that can be created and stored electronically using distributed ledger technology or similar technology, distributed over digital networks, and can represent value or rights.” This definition aims to create a legal framework, enhancing the safety and transparency of cryptocurrency usage. Additionally, the regulation will clarify how cryptocurrencies will be managed in the fight against financial crimes.
Why Is This Legislation Crucial for Turkey?
The FATF placed Turkey on the grey list in 2021 due to insufficient measures against money laundering and terrorism financing. Since then, Turkey has been aligning with the FATF’s standards. The new legislation aims to address the final requirement. This move will help Turkey exit the grey list, bolster its international financial reputation, and enhance its fight against financial crimes.
Concrete Implications of the Law
– The legal framework will provide safer and more transparent cryptocurrency transactions.
– Turkey’s financial regulatory compliance will improve, potentially attracting foreign investments.
– Clear rules will facilitate better monitoring and prevention of financial crimes involving cryptocurrencies.
– The legislation could stabilize the cryptocurrency market and strengthen the overall economy.
By meeting the FATF’s standards with this new legislation, Turkey is poised to strengthen its international financial standing and build a more robust foundation for its cryptocurrency market and general economy.