Turkey’s Finance Minister Announces Future Cryptocurrency Regulation Policy

In Turkey, in a cryptocurrency chaos, Finance Minister Lütfi Elvan appeared on the CNN Türk program, explaining the policy for future regulations. Coinpost reported this on the 8th.

In Turkey, confusion continued, as the government banned the use of cryptocurrency payments for goods and services, and two local exchanges suddenly closed down while taking over user assets.

According to Finance Minister Elvan, Turkey’s cryptocurrency exchange plans to introduce new regulations that report to the authorities for users who trade and purchase more than 10,000 Turkish Lira (about 1.35 million won) in the future. It did not mention when this regulation would come into force.

The 10,000 Lira standard is a stricter standard than expected by the cryptocurrency industry. The Turkish industry predicted a transaction report to the authorities, but it is known that, referring to the existing law, 75,000 lira (about 1,015 million won) was thought to be the reporting standard.

Meanwhile, the Minister of Finance said, “The Turkish government is not thinking that cryptocurrency investors are “trying to cheat.” It explained that Turkey is also applying anti-money laundering rules in accordance with the guidelines of the International Anti-Money Laundering Organization (FATF).

The FATF is establishing the’Travel Rule’, a global standard for preventing money laundering.

Travel rules are rules related to international wire transfer to prevent money laundering, etc., and VASP (cryptocurrency service provider) is required to collect and exchange information of sender and recipient at the time of transaction, and to guarantee the accuracy of the information.

[Various regulations are being established]

The Turkish government said two weeks ago that it would propose a more comprehensive regulation in the near future, but the minister said, “Cryptocurrency is a complex task and the government does not want to rush to work.” The announcement of the broader regulatory framework is likely to be postponed.

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While the comprehensive framework remains undecided, Turkey has recently introduced several individual regulations.

Except for the ban on the use of cryptocurrency payments, from May 1st, cryptocurrency exchanges have been added to organizations subject to anti-money laundering/anti-terrorism financing (AML/CFT) regulations. In addition, it is reported that there is a plan to establish a central custody institution to eliminate counter party risks and to require capital requirements from the exchange.

The minister said it will also come up with regulations to protect users. There are also concerns that many citizens invest without knowledge of cryptocurrency.

[Digital lira issuance plan]

According to local media TRT World, Turkey is also planning to issue a central bank digital currency (CBDC) by 2023, making it a challenge to clearly distinguish between what will be legally treated as currency and other assets.

The law prohibiting the use of cryptocurrency payments is interpreted as one of the backgrounds that defined cryptocurrency as an asset rather than a currency.

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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.