NEW CRYPTO FOR TURKEY ?

NEW CRYPTO FOR TURKEY ?

Ahmet Kenan Tanrikulu, has written a 22-page report seeking to highlight the regulatory vacuum that presently exists in Turkey pertaining to cryptocurrencies. The report also makes a number of policy recommendations for the development of a regulatory framework for virtual currencies, including advocating that Turkey develop a national cryptocurrency

The MHP deputy chair and former Industry Minister, Mr. Tanrikulu, has written a detailed report seeking to encourage Turkish lawmakers to develop a regulatory apparatus for cryptocurrencies.

In recent history, the Turkish government has struck a dismissive regarding cryptocurrencies, describing such as akin to a Ponzi scheme and warning prospective investors against seeking exposure to the virtual currency markets. Mr. Tanrikulu is concerned that Turkey is failing to embrace the revolutionary technology, telling media outlet Al-Monitor that “The world is advancing toward a new digital system. Turkey should create its own digital system and currency before it’s too late.”

The minister asserted that cryptocurrency adoption is growing among Turkish citizens despite the country’s current legal vacuum regarding virtual currencies. “The need for regulation is obvious,” Mr. Tanrikulu stated, adding that “the use of those currencies in illegal activities must be prevented.”

Mr. Tanrikulu makes a number of policy recommendations aimed at strengthening both the competitiveness of Turkey’s distributed ledger technology sector and the government’s regulatory capabilities regarding cryptocurrencies. “We need to create the infrastructure for the blockchain database. There are nearly 1,400 digital currencies in the world today and many countries are using them […] Opposing those currencies is meaningless. This is a national issue which requires a national consensus,” Mr. Tanrikulu said.

The minister also advocated that Turkey develop a state-administered virtual currency. Mr. Tanrikulu stated “We, too, can create a digital currency, based on companies in the Wealth Fund. Since the demand exists, we should create and release our own digital currency.”

Turkey’s Deputy Prime Minister, Mehmet Simsek, also recently indicated that the country may be making preparations for the development of a national cryptocurrency. In an interview with CNN earlier this month, Mr. Simske stated “We are planning to start our own work on digital currencies. We place high importance on digitalization.”