Turkey to debate on crypto regulation in the Parliament soon

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TL;DR Breakdown

  • Turkey has confirmed that it is planning to table crypto regulation proposals in their Parliament.
  • President Recep Tayyip wants lawmakers to help regulate cryptocurrencies to aid in rebuilding the country’s economy.

Turkey is planning to tackle crypto regulation, which many governments are yet to touch on. President Recep Tayyip revealed these plans yesterday at a press conference in Istanbul. He also said that the country now has a new economic model.

Turkey to start drafting crypto regulations

Turkey has been making headlines for the wrong reasons lately. Their economy has been spiraling due to the overwhelming inflation rates. Things seem to settle now, and their President spoke to the media on Friday to enlighten them about the new models to uplift their economy. He also touched on the regulation of cryptocurrencies.

President Tayyip said that his government would look into these assets soon. Since April, Turkey has been working on regulating cryptocurrencies when two crypto exchanges ran out of business. Per an official in the government, Turkey is seeking to license a custodian bank to eliminate third-party risks that hurt investors.

Thodex and Vebitcoin were the country’s largest crypto exchanges, and their collapse was a massive bow to the citizens of Turkey. Once the two exchanges stopped working, the citizens were left without access to their assets worth a fortune.

The Parliament will also discuss the capital threshold for the exchange platforms and education requirements at such organizations. The Turkish crypto boom also came from the 2021 crypto rush that many joined in coping with the adverse effects of inflation.

Previously, the CBRT Governor, Sahap Kavcioglu, had revealed that the Treasury and Ministry of Finance were drafting crypto regulations. He also said that his bank has no intentions to ban cryptocurrencies.

Crypto regulation becomes imminent

At this stage, the world’s governments are convening individually to draft crypto regulations. As a result, the possibility of cryptocurrency running unchecked for another five years is minimal. Major economies like China, the UK, Russia, and the US have already introduced crypto laws or are drafting them.

Other countries like India, Singapore, and Pakistan are also figuring out how to regulate cryptocurrencies properly. Yesterday, the Russian lawmakers and finance-related officials were in the State Duma to discuss the place of cryptos in the country. The officials were there to make sure that the new proposals touched all digital asset sectors.

China also began the push for crypto regulation long ago. The PBoC has severally said that these assets are harmful to the economy. However, the bank also iterates the ‘harmful assets,’ the digital Yuan. Later in September, the PBoC rendered all cryptocurrencies illegal in China in favor of their digital Yuan.

The US is also preparing crypto regulation proposals in a joint effort between the SEC and the Treasury. Once the suggestions are ready, the Treasury will read them to the congress for further discussions. Despite all these developments, no one knows how regulation will be fair with the market.

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