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Turkey plans to finalise crypto regulations in 2024

Monday 30 October 2023 11:49 CET | News

Turkey has revealed its plans to finalise cryptocurrency regulations in 2024 via the 2024 Turkish Presidential Annual Programme.

 

Specifically, the 2024 Turkish Presidential Annual Programme was published in the Official Gazette of the Republic of Turkey on 25 October 2023, outlining the country's objectives for the upcoming year. A key focus of this programme is the establishment of regulations governing the use of cryptocurrencies within the country by the end of 2024. 

Contained within the extensive 500-page document, Article 400.5 delineates the planned initiatives aimed at defining crypto assets, with an eye toward potential taxation measures. Additionally, it sets the stage for providing legal recognition and classification for crypto asset providers, including cryptocurrency exchanges. However, the document lacks specific details regarding the nature of these future regulations. 

In a significant development from September 2023, the CEO of Turkish cryptocurrency exchange Thodex received a staggering prison sentence of 11,196 years by a Turkish court. Thodex, once one of Turkey's largest cryptocurrency trading platforms, experienced a sudden collapse in 2021.

 

Turkey has revealed its plans to finalise cryptocurrency regulations in 2024 via the 2024 Turkish Presidential Annual Programme.

 

The state of cryptocurrency in Turkey 

Cointelegraph.com citing data from a 2022 study revealed that Turkey ranked as the second-highest nation globally in terms of search queries related to cryptocurrencies, with 5.5% of the population expressing interest in such matters. This surge in interest occurred in 2021, driven by the country's ongoing inflation crisis, which impacted the local fiat currency, the Turkish lira. 

In December 2022, the Central Bank of the Republic of Turkey concluded its initial trial of a central bank digital currency known as the digital lira. The Central Bank has indicated intentions to continue testing this digital currency throughout 2024. Despite these developments, the Turkish government has yet to make a definitive commitment to fully digitalise the country's currency, although President Recep Tayyip Erdoğan has consistently expressed support for the digital lira project. 

Data from Statista reveals that several factors have underpinned the growth of the cryptocurrency market. This includes the escalating acceptance and integration of cryptocurrencies by both individuals and institutions. The increasing interest in decentralised finance (DeFi) platforms has also played a significant role, as has the recognition of cryptocurrencies as a potential hedge against inflation and political instability. Furthermore, the ongoing advancements in blockchain technology and the expanding utilization of cryptocurrencies for cross-border transactions have contributed to the expansion of the market. 

Forecasts indicate that the cryptocurrency market is poised for sustained growth in the upcoming years. The continued adoption of cryptocurrencies by businesses and individuals, coupled with the continuous development of DeFi and other blockchain-based platforms, is anticipated to be a driving force behind this expansion.


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Keywords: cryptocurrency, regulation, compliance, digital assets
Categories: DeFi & Crypto & Web3
Companies: Turkey Gazette
Countries: Turkey
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DeFi & Crypto & Web3

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