Turkey Moves to Finalize Crypto Regulations Amid Soaring Adoption and Tests Digital Lira
Summary:
Turkey's Presidential Annual Program for 2024 plans to finalize cryptocurrency regulations within the next year, including taxation and legal definitions for crypto providers, following an elevenfold increase in crypto use amidst Turkish Lira's inflation crisis. While Turkey's Central Bank has begun testing a digital Lira, a formal commitment to digitization has not been made.
On October 25, Turkey's Presidential Annual Program for 2024, which was made public in the country's Official Gazette, outlined a goal to finalize regulations surrounding cryptocurrencies within the next year. Section 400.5 of the close-to-500-page program sheds light on forthcoming exploratory efforts geared towards defining digital assets - a move seen as a first step towards implementing a taxation system for them. The document also indicates that legal definitions for cryptocurrency asset providers, such as exchanges, will be established, though it lacks further specifics regarding potential future regulations.
In September 2023, Faruk Fatih Özer, the former chief executive of one of the country's top crypto exchanges, Thodex, was sentenced to over 11,000 years in prison by a Turkish court following the unexpected collapse of Thodex trading platform in 2021.
A study conducted in 2022 found that Turkey ranked second globally in terms of cryptocurrency-related search inquiries, with 5.5% of its population expressing interest. Amid an ongoing inflation crisis affecting the local currency, the Turkish Lira, the use of cryptocurrencies increased elevenfold in the nation in 2021.
In December of the following year, Turkey's Central Bank completed the initial trial phase of its digital Lira, signaling intentions to carry on with tests throughout 2023. While the Turkish government has yet to make a formal commitment to fully digitize its currency, President Recep Erdogan continues to voice his support for the project surrounding the digital Lira.
Lastly, an in-depth examination of the Bitcoin revolution taking place in Cuba provides an interesting perspective from the ground.
Published At
10/27/2023 10:09:12 AM
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