Turkish finance ministry to study cryptocurrency with local regualtors

Turkey made itself a name as a crypto-friendly nation with a “wait and see” method on digital possessions, however that might be about to modification as the federal government is now prepared to take things in hand.

The Turkish Ministry of Treasury and Finance went to Twitter to reveal issues about cryptocurrencies and to reveal collective deal with the subject with a number of local regulators on March 1.

According to the statement, the ministry is working with the reserve bank together with 2 monetary regulative firms:

“We share the rising concerns about crypto with the rest of the world. The developments (on crypto around the world) and the state of crypto in Turkey are closely monitored by our ministry. We are collaborating with the Central Bank, Banking Regulation and Supervision Agency, and Capital Markets Board within this frame under the presidency of Deputy Minister.”

Cointelegraph Turkey connected to local blockchain and crypto professionals for remark. Blockchain 101 co-author and Blockchain Turkey Platform’s primary editor Ahmet Usta kept in mind that the fast-growing cryptocurrency and digital possession communities can be dangerous for financiers who are inexperienced in the complex characteristics of crypto. 

“I think it would be appropriate to approach the statement by The Ministry of Treasury and Finance within this context, and I hope future regulations will pave the way for innovation while protecting consumers,” he stated, “I hope Turkey will seize this historical opportunity in the field of cryptocurrencies and blockchain technology, which made these assets possible and reach a leading position with its exemplary projects in the global arena by creating a healthy ecosystem.”

Crypto speaker İsmail Hakkı Polat informed Cointelegraph that the main objective of the ministry’s statement is to secure customer rights, specifying, “I believe the first step would be licensing local crypto exchanges to prevent any activities that could potentially harm investors. This can be done by using capital markets as a template.”

The 2nd action, according to Polat, might be taxes for crypto trading, possibly as quickly as the 3rd quarter of 2021: 

“If the government takes a friendly approach here by placing lower tax rates, making it easier to buy and sell Bitcoin or other cryptocurrencies within a legal framework, Turkey would then become an attractive market for the global crypto investors again. In a time where the foreign capital flow is a serious need, global crypto investors’ potential interest in Turkey would bring economic relief to the country.”

Polat likewise recommended that any prospective tax policy need to follow the method of worldwide organizations such as the Financial Action Task Force and have clear meanings of what makes up a cryptocurrency.

“Lack of definition and regulations for cryptocurrencies would cause confusion of authority among regulatory bodies. Taxes would surely come, but only after a systematic and careful study,” Polat stated.

In an earlier interview, Binance CEO CZ informed Cointelegraph that the exchange worked carefully with local regulators when getting in Turkey. “Working with governments is key to building a sustainable industry and promoting greater adoption. We are always working with local regulators in our development efforts,” he then described.

Özgür Güneri, the CEO of significant Turkish crypto exchange BtcTurk, revealed open assistance for policies in a news release. “A regulatory framework for the cryptocurrency market would add value to İstanbul Finance Centre strategy and position Turkey as a leader in this industry. We appreciate and support the efforts within this context.”

More assistance for the statement originated from Bitpanda Turkey basic supervisor Elbruz Yılmaz, who stated that his exchange has knowledge on the regulative structure of European markets and is prepared to take part in local research studies on the subject.

According to an earlier report from Cointelegraph, the Capital Markets Board of Turkey, the regulative body managing securities markets in the nation, had strategies to establish standards to supervise, examine and control crypto markets.

Additional reporting by Cointelegraph Turkey’s Ayşe Karaman and Emre Günen.