Recently, a number of regulators have decided to conduct an in-depth investigation on cryptocurrency in Turkey, although oversights seem to be welcomed by local experts. Turkey is another example of one of those countries which have adopted a precautionary approach when it comes to cryptocurrency and digital assets.
Turkish Ministry to work alongside the central bank and financial regulatory agencies
Due to its approach that many would classify as ‘wait and see,’ Turkey has managed to become a relatively crypto-friendly country, although this might change in the near future due to government involvement. To this end, the Turkish Ministry of Treasury and Finance has decided to work alongside the central bank as well as a couple of agencies regarding financial regulation. This decision came at the behest of concerns revolving around the use of cryptocurrency and its potential consequences.
According to a recent announcement made on Twitter, Turkey seems to share the same concerns regarding cryptocurrency with everyone else around the world. These developments are therefore being closely monitored as the Ministry ponders the future of digital assets in their country. As aforementioned, the central bank will play a pivotal role going forward, along with the Capital Markets Board and the Banking Regulation and Supervision Agency. This collaboration will also be conducted under the Deputy Minister’s presidency as well.
Polat thinks the Ministry’s main goal is the protection of consumer rights
Ismail Hakki Polat, a lecturer on cryptocurrency, made it known that the reason for the Ministry’s recent decisions does not really have much to do with the utilization of cryptocurrency itself; rather, they are primarily concerned with protecting the rights of everyday consumers.
To this end, he believes a two-step approach would be appropriate, with the licensing of local cryptocurrency exchanges being the first step. This would allow the prevention of harmful activities which may otherwise harm investors. The second step would be to administer low taxes on crypto trading, as he believes this would make it easier to buy and sell in any cryptocurrency (such as Bitcoin), and it can be done within a legal framework. This could also lead to Turkey being able to attract investors from all over the world, but Polat reiterates the importance of successfully implementing the two-step approach first before anything else.