Turkey has made a name for itself as a cryptocurrency-friendly country with a wait-and-see approach to digital assets, but that could change soon as the government is now ready to take matters into its own hands.

The Treasury and the Turkish Treasury took to Twitter to voice concerns about cryptocurrencies and on Monday to announce cooperation with several local regulators on the matter.

According to the announcement, the ministry is working with the Central Bank with two financial regulators:

“We share our growing concerns about cryptocurrencies with the rest of the world. Developments (related to cryptocurrencies around the world) and the status of cryptocurrencies in Turkey are closely monitored by our ministry. In this context, we are working with the Central Bank, the Banking Regulation and Supervision Agency and the Capital Markets Committee headed by the Deputy Minister. ”

Cointelegraph Turkey has reached out to local blockchain and crypto experts for comment. Ahmed Usta, co-author of Blockchain 101 and editor-in-chief of Blockchain Turkey Platform, noted that rapidly growing ecosystems of cryptocurrencies and digital assets can be risky for investors unfamiliar with the complex dynamics. cryptocurrencies.

“I think it would be appropriate to approach the statement of the Ministry of Finance on this matter, and I hope that future regulations will pave the way for innovation while protecting consumers,” he said. “I hope Turkey will seize this historic opportunity in the field of cryptocurrencies and blockchain technology which enables these assets and has achieved a leading position globally by creating a healthy ecosystem with its exemplary projects.”

Crypto speaker Ismail Haki Bulat told Cointelegraph that the main purpose of the ministry’s announcement is to protect the rights of consumers by using the financial markets as a model. ”

According to Polat, the second step could be to tax cryptocurrency trading, perhaps as early as the third quarter of 2021:

“If the government takes a friendly approach here by introducing low tax rates and making it easier to buy and sell bitcoin or other cryptocurrencies within a legal framework, Turkey will again become an attractive market for global cryptocurrency investors. At a time when the influx of foreign capital is a serious need, attention is being paid. Potential global cryptocurrency investors in Turkey would bring economic relief to the country. ”

Polat also suggested that any possible tax regulations should follow the approach of international institutions such as the Financial Action Task Force and contain clear definitions of what constitutes a cryptocurrency.

“The absence of tariffs and regulations for cryptocurrencies would lead to confusion among regulators. Taxes would certainly arise, but only after systematic and careful investigation,” Polat said.

In a previous interview, Binance CEO Changanceg Zhao told Cointelegraph that the exchange worked closely with local regulators when it entered Turkey. “Working with governments is the key to building a sustainable industry and fostering greater dependence. We always work with local regulators in our development efforts.”

Ozgur Guniri, CEO of large Turkish crypto exchange BtcTurk, expressed his open support for the regulation in a press release. “The regulatory framework of the cryptocurrency market will add value to the strategy of Istanbul’s financial center and position Turkey as a leader in this sector. We appreciate and support the efforts in this regard.”

Further support for the announcement came from Elbruz Yılmaz, Managing Director of Bitpanda Turkey, who said his exchange has experience in the regulatory framework of European markets and is ready to participate in local studies on the subject. .

According to a previous Cointelegraph report, the Turkish Capital Markets Council – the regulator that oversees the country’s stock markets – intended to develop guidelines to monitor, review and regulate the cryptocurrency markets.

Additional cover by Ayesha Karaman and Emre Gonen of Cointelegraph Turkey.

Source: CoinTelegraph