The country has joined the race to draft a crypto asset framework to regulate its crypto space and prevent instances of fraud that have recently emerged.
A new crypto asset framework in Turkey could be the foundation for crypto regulations in the country. The Official Gazette of the Republic of Turkey saw the same mentioned in the 2024 Turkish Presidential Annual Program. The program states crypto regulations will be a reality in Turkey by 2024. With the move, crypto firms like exchanges may also receive a legal status. On the other hand, crypto assets could be taxed according to rules.
Although crypto regulations could debut in the country for the first time, Turkey has seen blockchain-related developments earlier. In January 2023, the country was mulling creating blockchain-based identities for its citizens.
Meanwhile, Turkey has also shown its interest in central bank digital currencies. The digital lira helped implement a transaction in December 2022. Authorities scheduled further tests for the CBDC in 2023. With numerous central banks worldwide developing their own CBDCs, digital currencies have received wide promotion. Private corporations have also completed their trials related to digital currencies.
As crypto regulations receive government support in the country, cases of fraud and scams could decrease. In recent times, Turkey has seen a surge in such cases. Multiple countries have recognized the need for global crypto regulatory policies as well.
The Turkish have always featured on the top when it has come to crypto adoption. Reports have claimed over half of the country’s people owned crypto. It could also be due to higher inflation in the country in 2023. Hence, its central bank raised interest rates again, saying, “Monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in inflation outlook is achieved.”
Crypto, as a result, could have been the preferred investment asset class in Turkey.