Turkey has made clear that it wants to impose regulations on cryptocurrency assets, which represents a dramatic change in its financial approach. The newly announced 2024 Presidential Annual Program revealed this development. The statement, which has been translated from its original form, outlines a clear stance on cryptocurrency, a business that is quickly taking off in the nation. As a result, the government wants to complete studies that identify digital assets in a legal manner.
The nation has seen an increase in cryptocurrency investors, mostly as a result of its fight against high inflation rates. According to a KuCoin survey, over half of Turkish citizens now view digital currencies as a safety net against the current economic downturn.
Furthermore, the comprehensive regulatory plans—which were released in an Official Gazette supplement—are drawing attention to earlier issues that were marginalized in Turkish finance circles.
Turkey Wants to Classify Cryptocurrencies Clearly
The public’s demand and the need for increased security are taken into account in the impending regulatory framework. At first, regulations limited the use of cryptocurrencies in order to protect the Turkish lira, but national cryptocurrency aficionados opposed these measures. These fundamental changes in legislation are the result of their unwavering activism, which had a considerable impact on the government’s position.
The Presidential Decree’s “Policies and Measures” item 400.5 mentions certain projects pertaining to cryptocurrencies. In order to provide policy clarity, it is imperative that digital assets be legally classified, as this section emphasizes. In addition, the agenda for 2024 emphasizes the introduction of regulatory standards for bitcoin exchanges, albeit the details are still unknown.
Turkish Crypto Laws Accelerate Due to Thodex Debacle
Turkey’s previous attempts to enact laws pertaining to exchanges and cryptocurrencies, particularly in relation to taxes, were unsuccessful. Following the Thodex exchange crisis in April 2021, the need for government involvement became apparent. A shock to the country’s economy, over 400,000 customers could have lost deposits totaling $2 billion. The CEO, Faruk Fatih Ozer, was arrested as a result of this incident, and he was subsequently sentenced to 11,196 years in jail this September.
Preventing disasters and creating a safe and transparent trade environment are the goals of the new framework. This initiative by the Turkish government, while still in its early stages, is an important step toward recognizing and legitimizing digital assets while protecting investor interests.