Turkey currently has regulations that prevent the Bitcoin industry from expanding in the territory. Erdoğan shows signs of intervention in the market to stop the lira from devaluing.
The cryptocurrency exchange Binance recently received a fine of 8 million liras (USD 750 thousand) for allegedly not complying with Turkish regulations. That measure indicates that President Recep Tayyip Erdoğan welcomes the regulation on Bitcoin and other cryptocurrencies in his jurisdiction.
The head of State told local media that the law to regulate Bitcoin is ready, and they will send it to Parliament without delay. They did not yet provide details on the above legislation, but recent facts may reveal where the regulations are heading.
In March, the Turkish government banned using cryptocurrencies to pay for goods and services amid a social and financial crisis. The regulation, which contains six articles, appeared in the Official Bulletin of the issuing entity on April 16th under No. 31456.
The Central Bank stated that payment service providers could not develop business models or provide any service related to cryptocurrencies. They seek to avoid the direct or indirect use of crypto assets to provide payment services and issue electronic money.
In September, Erdoğan said he was in a war against Bitcoin, and the State would take action to prevent its proliferation among the population. However, many citizens see cryptocurrencies as a store of value given the depreciation of the lira, the legal fiat currency in that country.
Concerning the sanction against Binance, the exchange informed they work with the Turkish State to create a sustainable, healthy, and secure ecosystem.
Turkey Wants Its National Fiat Currency to Gain Value
On Christmas Eve, the Turkish president highlighted that they would take measures to achieve the revaluation of the lira. However, they did not inform the imminence of the law that will regulate the use of Bitcoin in that nation.
Erdoğan announced that they would impose a new economic model with risks and opportunities ahead. He stated that citizens would see the Central Bank, the guarantor of the treasury, as the protector of their money.
The lira has lost more than 85% of its value in the last ten years. The president reflected on the issue, which raised more doubts than certainties among Turkish citizens.
He said that the exchange rate is not a matter of mathematics but process, as it flows like on the bed of a stream. With that idea in mind, he expressed that they intended to channel a drypoint. However, he pointed out that the exchange rate would find its price in the market.
In a certain way, the Turkish government will put its hands on the foreign exchange market to prosecute it. However, the market itself would decide how much the lira is worth, as always happens. Many other countries have tried doing that successfully on previous occasions.
The relevance of Bitcoin and other cryptocurrencies is increasingly evident worldwide, and the president of Turkey knows it. His government is willing to implement a regulation to prevent the use of crypto assets among citizens. Besides, they seek to ban all services involving digital currencies like the case of Binance, which they fined.
By Alexander Salazar
