Crypto investors in Turkey are eagerly awaiting the details of the country’s cryptocurrency regulation, which has been in the works for years without a solid draft being shared with the public. There have been instances of alleged drafts circulating, which later turned out to be false, causing concern due to their troubling details.
Countries around the world are seeking ways to establish legal frameworks for cryptocurrencies. Turkey has been working on this for a while, but the expected legal regulations, which were said to be imminent at the end of 2021, were forgotten as the bear market began.
However, Tansel Kaya recently shared on his account that, according to his sources, the legislation is expected to emerge at the beginning of next year. He hinted at the possibility of a Bitcoin ETF launching around January 10, coinciding with Turkey’s legal regulation, which could eliminate all risks associated with Bitcoin.
The new regulation may restrict access to foreign exchanges while allowing local branches of exchanges to continue operating. There is curiosity about how the government will handle the fact that many exchanges use order books from overseas exchanges. It is likely that exchanges will be permitted to import cryptocurrencies, but individuals will not have this privilege.
Previously, Efe Bulduk had mentioned that the details of the law would be revealed in the last quarter, but no law has been announced yet. The relationship between the government’s work plan for 2024 and the expected announcement of the law preparations in January remains unclear. The two pressing issues for Turkey are the concern over capital outflows and combating money laundering. While some countries attempt to prevent capital outflows by severing local exchanges’ connections with foreign entities, this is not seen as a solution. Instead, steps like on-chain intelligence, data monitoring units, and following KYC obligations should be taken to regulate exchanges. Both the U.S. and Turkey are discussing crypto laws ahead of elections, but the potential for these proposals to cause significant voter shifts could lead to their non-enactment. The final law, if announced in January, may undergo revisions based on public reactions.
