Turkey has proven to be a cryptocurrency-friendly country with a wait-and-see approach to digital assets, but this may change as soon as the government is now ready to take matters into its own hands.
Turkey’s Ministry of Finance and Finance took to Twitter to express concerns about cryptocurrencies and announced on March 1 that they are working together on this issue with several local regulators.
According to the announcement, the ministry is working with the central bank and two financial regulatory authorities:
“We share the growing concern about cryptocurrency with the rest of the world. Our ministry closely monitors the development of (cryptocurrencies around the world) and the state of the cryptocurrency in Turkey. We cooperate with the central bank, the Banking Regulatory and Supervision Authority and the Capital Markets Board within this structure led by the Deputy Minister. ”
Cointelegraph Turkey has contacted local blockchain and cryptocurrency experts for comment. Blockchain 101 co-author and editor of Blockchain Turkey Platform Ahmet Usta noted that the rapidly growing ecosystems of cryptocurrencies and digital assets can be risky for investors unfamiliar with the complex dynamics of cryptocurrencies.
“I think it would be appropriate to approach the statement from the Ministry of Finance and Finance in this context, and I hope that future rules will facilitate innovation while protecting consumers,” he said. I hope Turkey will take advantage of this historic opportunity. In cryptocurrency and blockchain technology, which made these assets possible and achieved groundbreaking positions with their examples of projects on the global stage, creating a healthy ecosystem. ”
Cryptolector Ismail Hakki Bulat told Cointelegraph that the main purpose of the ministry’s statement was to protect consumer rights and said: “I think the first step will be to license local crypto exchanges to prevent actions that could harm investors. Using capital markets as a model. ”
The second step, according to Polat, could be taxes on cryptocurrencies, possibly as early as the third quarter of 2021:
“If the government takes a friendly approach here, cuts tax rates and makes it easier to buy and sell bitcoins or other cryptocurrencies by law, Turkey will once again become an attractive market for global cryptocurrency investors. The inflow of foreign capital is an urgent necessity, as is the potential interest of foreign investors. Coded worlds in Turkey will provide economic relief to the country.
Polat also suggested that any potential tax regulation should follow the approach of international organizations, such as the Financial Action Task Force on Money Laundering, and have clear definitions of what constitutes a cryptocurrency.
The lack of a definition and rules for cryptocurrencies will create confusion in the regulatory structure of regulators. The fees will undoubtedly come, Polat said, but only after a thorough and systematic investigation.
In an earlier interview, Binance CZ chief Cointelegraph said that the stock exchange had worked closely with local regulators when entering Turkey. “Working with governments is the key to building a sustainable industry and promoting wider adoption.” Then he made it clear that we always work with local regulators in our development work.
Ozgur Guneri, CEO of Turkey’s major cryptocurrency exchange BtcTurk, expressed his open support for the rules in a press release. The regulatory framework for the cryptocurrency market will add value to the Istanbul Financial Center strategy and make Turkey a leader in this industry. We appreciate and support the efforts in this context. ”
This announcement received additional support from Elbruz Yilmaz, general manager of Bitpanda Turkey, who said that his exchange has the knowledge of the regulations for European markets and is ready to participate in local research on the subject.
According to an earlier report by the Cointelegraph, Turkey’s Capital Markets Board, the regulator that oversees the country’s stock markets, planned to develop guidelines for the supervision, review and regulation of cryptocurrency markets.