A New Crypto Law in Turkey is Imminent
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Bitcoin and crypto regulation around the world is a hot topic, with Turkey the latest country to join the list. According to Turkey president, crypto regulation in the country is imminent as he prepares to send a crypto law for voting in the parliament very soon. He told reporters that the law will be sent to the national assembly without delay. It comes at a peak time for cryptos in Turkey that have become incredibly popular due to the rising inflation rate and record laws for the Turkish lira against the US Dollar.
So far, cryptocurrencies including Bitcoin have been existing in a legal grey area in Turkey, but that’s about to change. The good news is that this law isn’t similar to the laws proposed in India. As a matter of fact, Turkey is looking to regulate cryptos, but not outlaw them.
Positive Changes Ahead
In the past couple of years and especially in 2021, Bitcoin’s adoption in Turkey grew at an astounding rate. People are very interested to invest money in crypto due to the ever-growing inflation. The Turkish lira has just hit a record low against the US Dollar. In those financial conditions, people tend to turn to cryptocurrencies. Turkey’s struggling economy is a big problem, although the government’s control of media outlets paints a prettier picture.
The growing acceptance of Bitcoin and cryptocurrencies have challenged the authoritarian Recep Tayip Erdogan. Known for ruling with an iron fist, he’s been trying to solve the economic struggles and bolster the lira. In order to do that, the Turkish central bank banned the use of cryptocurrencies for payments back in April. However, no one mentioned anything about holding them, so holding crypto in the country remains a legal option.
At the time, the central bank governor, Sahap Kavcioglu, said that the government is looking to regulate cryptocurrencies, although no timeline was mentioned. From that point forward, crypto investments have soared, so the government reacted promptly. Recently, president Erdogan announced financial measures to protect the lira, sending its value up by 20%.
It did nothing for crypto investors as more and more people are interested in joining the crypto market.
Regulation Coming Soon
No one knows when the new law will be sent to the parliament, with experts believing it will be in January or February 2022. Erdogan is looking to regulate crypto ASAP, with the draft law probably limiting payment possibilities. Holding crypto will most likely stay legal, although it’ll be interesting to see what the president and his councilors came up with.
Crypto adoption throughout Europe has been on the rise. Many governments are looking to regulate crypto as soon as possible, not being able to withstand the rising crypto adoption. The good news is that the current stance is mainly positive, with no country set to ban cryptos for good. Newly drafted laws are surely restraining the use of cryptos, but leaving an open door for changes in the future.
