Mehmet Şimşek made a groundbreaking announcement during the General Assembly of the Turkish Grand National Assembly about the Ministry of Treasury and Finance’s 2024 budget, revealing a specific timeline for cryptocurrency regulation. For the first time, he confirmed that the regulation will be presented to Parliament in January 2024.

Highlighting Turkey’s tax landscape, Şimşek debunked claims about high tax burdens, noting that the country’s overall tax load stands at 20.8%, ranking as the third lowest among 38 OECD nations. He stressed that taxes on income and profits, constituting 5.8% of the national income, are notably lower than the OECD average. His focus lay on the deficiency in direct tax revenues rather than the weight of indirect taxes.

He attributed the inadequacy of direct taxes to exemptions in income and corporate taxes, along with unregistered economic activities, significantly contributing to the income gap. Taking a firm stance against unrecorded economic activities, he disclosed their efforts in 2023, compiling reports on 14,525 individuals across 1,624 files, shared with legal and intelligence bodies. Şimşek underscored their resolute battle against money laundering and terrorism financing, asserting their compliance with FATF conditions, poised for removal from the grey list.

Şimşek then shifted focus to cryptocurrency regulation, highlighting Turkey’s alignment with 39 of the 40 FATF standards. He referenced a letter received post-FATF’s October meeting, confirming Turkey’s progress, with cryptocurrency regulation as the sole remaining issue:

“Our plan is to finalize cryptocurrency legalities in January. However, mere regulation isn’t enough. Effective implementation is key for removal from the grey list. We’ve made substantial strides and shared these advancements with FATF. Despite potential objections, Turkey’s progress will be acknowledged. We foresee Turkey exiting the grey list next year.”