Turkish Banks Embrace Crypto Ahead of Impending Legislation

• New Crypto Legislation on the Horizon for Turkey
• Major Banks Embrace Crypto
• Turkey's Position in Crypto Adoption
• Government Stance on Crypto

New Crypto Legislation on the Horizon for Turkey

Uncertainty surrounds Turkey's imminent introduction of new regulations for the crypto sector. Despite the unclear nature of these prospective laws, the increase in crypto adoption remains unswayed, even at an institutional level.

Major Banks Embrace Crypto

Earlier this week, two of Turkey's largest banking groups divulged their new crypto initiatives. Akbank's investment arm recently disclosed its acquisition of local crypto company, Stablex. A senior representative from Ak Investment expressed ambitions for the group to become a significant participant in the digital asset arena.

In a successive move, Garanti BBVA, another prominent bank, introduced its crypto wallet application. This application, equipped with a cold wallet feature, facilitates the sending and receiving of assets such as bitcoin (BTC), USD Coin (USDC) and ether (ETH).

Turkey's Position in Crypto Adoption

According to Chainalysis' Global Crypto Adoption Index 2023, Turkey ranks among the top 20 nations. This year, the country also hosted the Ethereum$2,315 -2.42% conference, Devconnect. However, the government has expressed reservations about unchecked adoption.

Government Stance on Crypto

In 2021, the national central bank imposed a ban on the use of crypto for payments, although a complete prohibition of digital assets was dismissed by officials. Recently in November, a government official indicated that crypto legislation is set for parliamentary review soon. The specifics of this framework remain undisclosed, but it is aligned with the country's plan to exit the Financial Action Task Force's (FATF) "grey list". This list identifies countries that need to rectify deficiencies in their anti-money laundering and terrorist financing measures.

Edited by Jonathan Stoker