By Shelly Melancon (Switzerland)
Regulating Turkey’s Crypto Space
A recent Bloomberg report states that Turkish authorities are about to create new regulations for crypto players in the country. The report claimed that it received its information from two top-level Turkey officials. However, it stated that the officials with insider knowledge about the matter would prefer to remain anonymous.
The officials told Bloomberg that Turkey’s President already has a draft of the crypto policy. But he would submit the bill to the nation’s legislators in the next few weeks. The new crypto policy will make it mandatory for crypto-related firms to have a minimum working capital of 100M Liras ($6M).
The bill will also make it compulsory for all exchanges to have a physical location in Turkey. Hence, they can pay the relevant tax. Furthermore, the authorities are seeking ways to keep cryptos safe and secure. The new policy was the main topic of discussion during last week’s executive meeting.
Apart from the President, other top executives at the meeting include Fuat Oktay (Vice President), Mehmet Mus (Trade Minister), and Nureddin Nebati (Finance Minister).
The sources also said the authorities would discuss whether to impose a flat fee on all crypto-related transactions. Transactions refer to goods and services paid with cryptos. Various local media outlets reported that the Turkish President gave a special request to the ruling party earlier in the year.
Also read:He asked them to perform research about digital currencies and the metaverse. Data from triple, a leading VASP in Turkey, claims that 2.95% of Turkey citizens are crypto holders.
Turks Seek Lifeline With Crypto Investments
Various reports also claim that crypto adoption is increasing fast in Turkey. According to these reports, the weak local fiat currency and the high inflation rate is causing Turks to invest in inflation-proof assets.
Most Turks have been investing in gold. However, others are also starting to invest in BTC and stablecoins, especially USDT. The reports further claim that Turkey’s inflation rate of 70% last month is its highest in the last 20 years. There are unconfirmed reports that the value of Turkey’s fiat currency is 50% down from its value as of last year.
It is noteworthy that Turkish authorities have been encouraging its citizens to keep their precious metals in banks. Thus, they can support the nation’s financial institutions. Thus, many Turks are using this information as a hint from the government to further invest in cryptos, gold, and other inflation-proof assets.
Popular crypto advocate, Michael Saylor, had some advice for Turks. He said that the best way for Turks to survive is to earn in USD while working from Turkey. Then, he said if they want to live a comfortable life, they should invest all their earnings in BTC. Given his preference for the leading digital asset, Saylor’s advice isn’t surprising.
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