Turkey is seeking to implement a regulatory framework that will regulate the digital currency industry. The country’s Ministry of Treasury and Finance confirmed it has finalized a digital currency bill that it would propose to parliament in October in a bid to protect investors and prevent money laundering. Turkey has been experiencing surging inflation, a plunge in demand for its debt, and a rising unemployment rate.
Turkey is trying to curb the rise of digital currencies.
The government of Turkey has attempted to curb the rise of digital currencies. Earlier, the government banned digital currency as a payment method. And now, it wants to enforce a law that curtails the use of digital currencies with the goal of protecting investors. Turkey’s Ministry of Treasury and Finance announced that a draft bill to establish a legal framework for the digital currency industry is now ready. This bill is set to be introduced to parliament, otherwise known as the Grand National Assembly of Turkey, in October 2021, when sessions commence.
Turkey needs stricter regulations for digital currencies.
Commenting on the bill, Deputy Minister Şakir Ercan Gül stated that Turkey needs stricter regulations for cryptocurrencies than most countries in Europe and North America. The minister further noted that since Turkey has a free-floating exchange rate system, digital currencies could significantly impact the value of the local currency- the lira. A free-floating exchange rate system is one in which exchange rates are determined by demand and supply. The bill will define the different classes of cryptocurrency assets. It will also set policies governing their issuance, distribution, trading, and custodial services. Several other countries are also working on crypto regulations.