Turkey's Concern for Crypto Mounts, Races to Implement Long-Awaited Regulation

Following confirmation that the long-awaited crypto regulation is ready by the Turkish President, Recep Tayyip Erdoğan, stakeholders in the country want the regulations to be implemented as soon as possible.

As reported by local news platform, the Daily Sabah, key stakeholders, including members of parliament, crypto executives, and representatives of public institutions such as the Technology and Infrastructure Ministry, the Treasury and Finance Ministry, the Turkish banking watchdog Banking Regulation and Supervision Agency (BDDK), Turkey's Financial Crimes Investigation Board (MASAK), the Revenue Administration and the central bank, all met on Thursday to discuss the regulations which are billed to govern the ecosystem.

Commenting after the meeting, the AK Party Group Deputy Chairperson Mustafa Elitaş said that the general consensus amongst the participants was that the law should be rolled out immediately. He added that;

"The representatives expressed the drawbacks about going and returning from abroad, and an arrangement needs to be made for these. Determinations should be made in this regard so that new grievances do not arise. There is a market volume of $2 billion-$3 billion, and there are between 5 million and 14 million players and investors in this market. There may be manipulations, but legal regulation is clearly needed to prevent them."

The digital currency ecosystem is obviously not the same as a decade ago. While Elitaş pointed out that more than seven countries have rolled out their own regulation, Turkey will also not like to sit on the sidelines. According to insights, crypto stakeholders were reportedly not against crypto taxation, an intricate provision that countries like South Korea postponed implementing by January 2022. 

Despite the unity of all the stakeholders in relation to the proposed crypto regulation in Turkey, there are concerns about rebalancing with foreign entities. However, Elitaş said the text of the regulations would be such that it can easily be adjusted as required shortly.

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