Cryptocurrencies are being regulated worldwide, and Turkey is expected to announce its regulations in January, confirmed by the statements of the Treasury Minister. The CEO of İş Bankası, Hakan Aran, recently made significant remarks about cryptocurrencies, highlighting the gravity of the matter.
Speaking at the Future of Finance summit, Hakan Aran addressed the importance and the need for cryptocurrency regulations. Despite expectations since the end of 2021, no concrete regulatory framework has been established, and only rumors of consultations with local exchange authorities and key figures have surfaced.
Aran emphasized that cryptocurrencies, born in 2008, are not a coincidence but a product of technological rebellion against a financial system that collapsed that year. He argued that cryptocurrencies are vulnerable to volatility due to the lack of a solid traditional financial background and called for strong regulations. Aran believes that traditional financial institutions should contribute to the regulatory process, as banks are among the most trusted institutions and could easily take on the custody function.
The announcement of regulatory intentions by Binance‘s Turkish branch in 2021 provided insights into the focus of rule-makers, likely aiming to restrict global exchanges and prevent capital outflow. However, the nature of money has changed; it is now stored on the blockchain, which has no country.
The Central Bank of Turkey, which sometimes struggles to meet physical foreign currency demand, could benefit from the rise in stablecoin usage. By creating its own blockchain-based currency, Turkey could monitor financial flows, combat money laundering, and leverage this in economic planning.
While much can be discussed, it’s crucial not to prejudge before seeing the initial draft in January. The question remains whether Turkey will step towards a global crypto world without its presence or build a future where it benefits from cryptocurrency.