Can Erdogan’s promise to regulate crypto in Turkey save his falling lira

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Many crypto experts and analysts have predicted that 2022 will see an increase in crypto regulations and laws. As of January 1, 2022, this already appears to be the case as one country appears to be laying the groundwork to quickly issue a crypto bill.

Turkey turns to regulation

As the New Year dawns, Turks around the world have reacted to President Recep Tayyip Erdogan’s demand that Turks keep their savings in Turkish liras. The announcement comes as the country struggles with rising inflation due to the depreciation of the currency – which at one point fell 7% in a matter of minutes.

The Turkish lira has weakened against the US dollar by around 16% since the start of the week. This confirms that TCMB wasted $ 8 billion in declining foreign exchange reserves last week to prop up the pathetic lira for nothing. The ONLY way to read it is with a #CurrencyBoard. pic.twitter.com/jNazblOgVh

– Steve Hanke (@steve_hanke) December 30, 2021

However, is it possible that this call to revert to a native currency signals upcoming crypto regulations in the country? In the closing days of 2021, the Daily Sabah quoted the president as saying the law to regulate cryptocurrency was ready. Plus, speed seems to be the essence. According to some reports, Mustafa Elitaş, vice-chairman of the Justice and Development Party (AK Party) group, said:

“The common opinion of the participants is that the law should be enacted as soon as possible.”

As the lira dipped in 2021, international media noted that Turks were converting their savings into gold, foreign currencies and even crypto to protect their wealth. In light of this development, an urgent crypto bill and a subsequent call for the re-conversion of the lira wealth makes sense. Additionally, a crypto tax is a possibility.

While early reports on the bill do not appear to hint at a blanket ban, the Hürriyet Daily News reported that the bill could result in a fine or even imprisonment for crypto “service providers” who do not. ‘are not authorized to operate.

According to Elitaş, around five million people nationwide have accounts on cryptocurrency platforms.

Overall, if Turkey plans to implement its crypto regulation bill in 2022, global events and political statements suggest it could happen sooner rather than later.

Nobody wants a Binance Christmas here

Binance Didn’t Have a Very Merry Christmas 2021 as Turkey’s Financial Crimes Commission of Inquiry [MASAK] hit the crypto exchange with a fine of $ 750,000. Indeed, Binance is said to have violated the laws of the country on crypto exchange platforms by not transmitting the user information desired by the regulators.

Special legislation for crypto platforms in Turkey came into effect in the spring of 2021. However, the December sanction is a sign that Turkey may be preparing to more strictly regulate its crypto industry.

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