Bora Erdamar works at the BlockchainIST Center in Turkey. He recently told the media about new cryptocurrency regulations that focus on setting licensing standards for avoiding system abuse. The Turkish government is reportedly working on a cryptocurrency regulatory framework. The nation intends to delist from the grey list of the Financial Action Task Force (FATF).
Registration Process of Crypto Companies
At present, the nation is ranked at fourth number in terms of cryptocurrency trading around the world. A Reuters report recently added statements from director Erdamar that the new regulatory framework is likely to add standardization for the licensing and registration process of crypto businesses.
BlockchainIST Center is a research and development firm focused on blockchain technology. He noted that these standardized policies will prevent possible system abuse.
The executive further stated that these policies will also account for contributing factors such as capital adequacy ratio, custodial options, upgrading cyber security, and holdings verification. The government officials of the region have also responded to the concerns raised by FATF.
According to a survey conducted by Chainalysis, Turkey has been ranked as the 4th largest nation in terms of cryptocurrency investors. Last year, the total trading volume in cryptocurrencies was measured at $170 billion.
Other nations ranked in this category are the United States, India, and UK as per the blockchain analytics report. Mehmat Turkarslan, the legal director of Paribu noted, that the urgency of crypto-related regulations.
He noted that legislative infrastructure for cryptocurrency businesses will introduce licensing procedure for virtual currency businesses. At the same time, it will help the country to get clearance from the grey list. He told reporters that the earliest cryptocurrency businesses in the country are expecting to get regulatory clarity from federal regulators.
He also talked about the importance of getting out of grey list as soon as possible. Therefore, he retained that government offices will issue regulatory framework for cryptocurrencies and licensing policies for virtual asset businesses.
Turkish Finance Minister Proposes Crypto Legislations to Address FATF Reservations
Mehmat Simsek, the finance minister of Turkey, talked about introducing cryptocurrency regulations in October in order to comply with FATF recommendations. His crypto legislation policies are part of the plan to remove the nation from FATF gray list.
The FATF ranking impacts the investment ratings and financial reputation of the nation in the international trading markets. Meanwhile, Bitcoin prices in Turkey have registered a new ATH of 1 million lira on account of inflationary pressure.
The nation has been dealing with economic constraints since 2020 when COVID-19 pandemic required the government to implement a lockdown as a preventive measure.
On this account, the ratio of cryptocurrency investors in the nation has continued to increase. Bitcoin prices reached 479,551.90 lira in 2021 and declined to 269,146 lira in mid of the same year. In 2022, the nation dealt with the economic impact of ongoing war between Russia and Ukraine.
Towards the end of 2022, Bitcoin was fairing at 315,013.22 lira until it recorded a new local ATH on 16th November, 2023. The main reason for devaluation of Turkish lira is parabolic inflation. Data suggests that the inflation rate for Turkey has reached 61.36% in comparison to 3.2% for the United States.
On this account, most citizens from the nation are investing in digital currencies such as Bitcoin as a hedge against inflation. However, the government is planning on bringing stricter regulatory policies for the crypto sector in the country.