Turkey’s Legislators Meet Stakeholders to Discuss Crypto Regulation, Pledge Security and Innovation in Draft Law

Turkey’s legislators met with digital asset stakeholders in a consultative meeting to discuss incoming crypto regulations on Tuesday.

Omer Ileri, the deputy chairman of the ruling party who oversees the Information and Communications Technologies disclosed the meeting with the team of crypto experts.

In a post on X (formerly Twitter), Ileri wrote that the administration’s work towards digital assets continues under the vision of President Erdogan stressing key areas of discussion.

Cumhurbaşkanımız Sayın @RTErdogan ‘ın ortaya koyduğu #DijitalinYüzyılı vizyonuyla çıktığımız yolda kripto varlıklarla ilgili çalışmalarımız devam ediyor. Bugün kripto varlıklara ilişkin yasa tasarısı konusunda sektör temsilcileriyle istişare toplantısı gerçekleştirdik.… pic.twitter.com/CaNI7sflt2

— Dr. Ömer İleri (@DrOmerileri) February 20, 2024

“Today, we held a consultation meeting with industry representatives on the draft law on crypto assets. I would like to thank our sector representatives for their contributions and hope that our meeting will be beneficial.”

Consultation to Focus on Security and Innovation

The meeting with the lawmaker was to discuss incoming crypto regulations in the country as the global demand surges. Ileri stated that the laws will protect investors in the local cryptocurrency market.

Last year, global authorities increased regulatory pressure on the market following hacks recorded resulting in losses hitting billions.

Turkey hopes to roll out its crypto regulation to create a pathway and clear rules for industry participants. Notably, the consultation with stakeholders in the crypto sectors has been lauded for arriving at market-friendly legislation.

This is unlike the United States market where some rules are still uncertain with industry participants criticizing the policies of the Securities and Exchange Commission (SEC).

The Gary Gensler-led SEC has filed several lawsuits against cryptocurrency firms in what many describe as a court approach to regulation.

Ileri added that Turkey’s goal will also drive innovation around the sector while protecting users and creating regulatory balance.

Web3 innovation has been the focus of crypto-friendly jurisdictions like Hong Kong and Dubai in their quest to create crypto hubs. The lawmaker explained huge plans for the blockchain and Artificial Intelligence sectors with the best standards.

Turkey’s Crypto Regulation Efforts

As global regulators ramp up policies, Turkey has made several moves toward cryptocurrency regulations.

On Jan 10, Mehmet Simsek, the Treasury and Finance Minister announced that the country has made progress with cryptocurrency regulations. Simsek previously disclosed the rules in October 2023 as part of plans to align with Financial Action. Task Force (FATF) recommendations.

According to reports, the rules are expected this year and will cover licensing of platforms, taxation, disclosures, etc. Bora Erdamar, a director at BlockchainIST Center commented that licensing will be a huge criterion for the upcoming legislation.

“Introducing certain licensing standards will be one of the top priorities in the new regulation. It prevents abuse of the system”. 

Last year, Turkey recorded surging cryptocurrency transaction volume hitting $170 billion, and ranked fourth on the list. Only the United States, India, and the United Kingdom ranked above Turkey according to a report by on-chain analytics from Chainalysis.