The Turkish government is preparing new legislation in the field of cryptocurrency, and it is currently unclear how restrictive these new regulations will be. However, this has not stopped institutional adoption of cryptocurrency. According to CoinDesk Türkiye, two major Turkish banking groups announced new initiatives related to cryptocurrency this week.
One of Turkey’s largest banks, Akbank, announced on Monday (11th) that its investment division has acquired local cryptocurrency company Stablex. A senior executive at Ak Investment stated that the group aims to become a significant participant in the digital asset space.
Another major Turkish bank, Garanti BBVA, launched its cryptocurrency wallet app the following day, which features cold wallet functionality and allows users to send and receive assets such as Bitcoin (BTC), US Dollar Coin (USDC), and Ethereum (ETH).
Turkey ranks in the top 20 in the Global Crypto Adoption Index 2023 released by blockchain analysis company Chainalysis. This year, the Ethereum Devconnect conference is being held in Istanbul, Turkey.
However, the Turkish government is not inclined to allow widespread adoption of cryptocurrency. In 2021, the country’s central bank banned the use of cryptocurrency for payments citing reasons such as government inability to effectively monitor, excessive market volatility, and use in illegal activities, but officials ruled out the possibility of a complete ban on digital assets.
It is reported that Turkish Finance Minister Mehmet Simsek stated in November that cryptocurrency regulations will be submitted to the parliament. Details of this framework are scarce, but it is part of the country’s strategy to get off the Financial Action Task Force (FATF) “gray list”. The FATF gray list is seen as a condemnation of some countries for strategic deficiencies in combating money laundering and terrorist financing.
Related report: “Turkey hit by severe earthquake, multiple cryptocurrency companies unite to aid relief efforts and victims.”