Turkey Advances Crypto Regulations Focusing on Consumer Protection and Global Standards: Impact on Bitcoin (BTC) and Ethereum (ETH)

• Turkey is set to submit a draft law on crypto regulation to the parliament this week, aiming to reduce risks for people dealing with cryptocurrency and bring crypto trading platforms under the Capital Markets Board’s control.
• The proposed regulations also include how platforms store customer’s cash and crypto penalties that apply for breaking the rules.
• According to a recent Statista study, Nigeria and Turkey lead in terms of crypto adoption and the proportion of crypto owners among 56 countries as of Feb. 2024.

Turkey’s upcoming crypto regulations aim to enhance consumer protection and global standards, marking a significant step in the country’s crypto adoption journey.

Regulations Aimed at Security, Licensing, and Global Recognition

The draft law, prepared by the Ruling Development and Justice Party’s (AK Party), seeks to reduce the risks associated with crypto trading. It proposes bringing crypto trading platforms under the control of the Capital Markets Board’s (SPK), which would then license and supervise these platforms. The regulations also cover how platforms store customer’s cash and the penalties that apply for breaking the rules. The specifics of these rules will be decided later through additional regulations.

Turkey’s Crypto Adoption on the Rise

A recent Statista study revealed that Turkey, along with Nigeria, leads in terms of crypto adoption among 56 countries surveyed as of February 2024. The study found that 47% of internet users in both countries reported owning or using cryptocurrency. This is significantly higher than the adoption rates in North America and European countries. Economic hardships like high inflation, weak currencies, and limited access to banks are some of the reasons why Turks are increasingly turning to crypto. They view it as a hedge against inflation and currency devaluation and a means to gain greater financial accessibility through the global crypto market.

Conclusion

The proposed crypto regulations in Turkey signify the country’s proactive approach towards managing the risks and potential of the burgeoning crypto market. By prioritizing consumer protection and aligning with global standards, Turkey is positioning itself as a leader in the global crypto adoption race. The impact of these regulations, once enacted, will be closely watched by other nations grappling with the challenges and opportunities of the crypto economy.