The Ministry of Finance and the Central Bank of Turkey began to develop regulation of the cryptocurrency market
The Turkish Ministry of Finance has begun working on the regulation of the cryptocurrency industry in conjunction with the Central Bank.
Turkey is positioning itself as a digital asset friendly country. However, the state is no longer ready to use “wait and see” tactics, and from March 1, it began to take active steps – the development of clear regulation of the cryptocurrency industry. To this end, the Ministry of Finance engaged the Central Bank of Turkey, the Turkish Banking Regulation and Supervision Authority (BDDK) and the Turkish Financial Markets Council (CMB). Regulators believe that the rapid development of the cryptocurrency market can be very risky for novice investors who are not yet familiar with how digital assets work.
Local players in the cryptocurrency industry hope that new regulations will not hinder the development of innovation. In this case, regulation will ensure the formation of a healthy ecosystem, and Turkey can take a leading position in the cryptocurrency arena. Ismail Hakkı Polat, a lecturer in cryptography, believes that the initiative of the Turkish Ministry of Finance is mainly aimed at protecting consumers. Therefore, the government’s first step will be to license local trading floors to insulate investors and traders from risk.
Polat suggested that Turkey could introduce a tax on cryptocurrencies this year. However, tax regulations must be consistent with the Financial Action Task Force (FATF). To do this, it is necessary to give a clear definition of digital assets, otherwise the lack of rules and concepts will cause confusion among regulators.
“If the government is loyal by lowering tax rates, making it easier to buy and sell digital assets under the law, Turkey will become an attractive market for cryptocurrency investors. The inflow of foreign capital has become a necessity, so the interest of foreign investors will become “economic reinforcement” for Turkey, Polat said.
The CEO of the Turkish cryptocurrency exchange BtcTurk, Özgür Güneri, believes that the development of a regulatory framework for the cryptocurrency market will increase Turkey’s importance in this industry. Elbruz Yılmaz, the head of Turkey’s Bitpanda trading platform, has also expressed his willingness to help regulators create regulations.
Recall that the Central Bank of Turkey plans to start testing the digital Turkish Lira in the second half of this year.