The Turkish Ministry of Finance has started to work on regulating the cryptocurrency industry together with the Central Bank.
Turkey positions itself as a country friendly to digital assets. However, the state is no longer ready to use a “wait-and-see” tactic, and since March 1, it has started active actions — the development of a clear regulation of the cryptocurrency industry. For this purpose, the Ministry of Finance has engaged the Central Bank of Turkey, the Turkish Banking Regulation and Supervision Authority (BDDK) and the Turkish Financial Markets Board (CMB). Regulators believe that the rapid development of the cryptocurrency market can be very risky for novice investors who are not yet familiar with the principles of digital assets.
Local players in the cryptocurrency industry hope that the 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. Lecturer on cryptography Ismail Hakkı Polat (Ismail Hakkı Polat) believes that the initiative of the Turkish Ministry of Finance is mainly aimed at protecting consumers. Therefore, the first step of the government will be to license local trading platforms to protect investors and traders from risks.
Polat suggested that Turkey could introduce a tax on cryptocurrencies as early as this year. However, the tax regulation must comply with the provisions of Financial Action Task Forces against Money Laundering (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 shows loyalty by lowering tax rates, making it easier to buy and sell digital assets within the framework of legislation, Turkey will become an attractive market for cryptocurrency investors. The influx of foreign capital has become a necessity, so the interest of foreign investors will become an “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 the importance of Turkey in this industry. The manager of the Turkish division of the Bitpanda trading platform, Elbruz Yılmaz, also expressed his readiness to help regulators in creating regulations.
Recall that the Central Bank of Turkey plans to start testing the digital Turkish lira in the second half of this year.