Many Turkish Banks Flock to Crypto

While waiting for the law, many Turkish banks poured into crypto

The Turkish government is working on finalizing a new set of laws for the crypto industry. Although there is still uncertainty about the limitations that the new legal framework may bring, many domestic financial institutions are shifting their investment to this emerging sector.

On December 11, the investment arm of Akbank announced the acquisition of local crypto company Stablex. At that time, representatives from Ak Investment affirmed their dream to become an important representative in the digital asset space.

On December 12, another leading bank, Garanti BBVA, officially introduced their own crypto wallet. This application also provides cold wallets, allowing users to send and receive basic assets such as Bitcoin (BTC), USD Coin (USDC), and Ethereum (ETH).

According to a survey conducted by Chainalysis, Turkey ranks in the top 20 countries with the largest global cryptocurrency adoption index in 2023. At the same time, this is also the host country for the Ethereum Devconnect conference in this year.

Even so, the Turkish government cannot be considered supportive of Bitcoin. In 2021, the central bank banned the use of crypto in payments. However, the authorities have completely lifted this ban on cryptocurrencies, and announced a series of new bills that include crypto regulation, prioritizing cryptocurrency research with the metaverse, and testing CBDCs. Most recently, the regulatory framework for crypto tax collection is under the framework of the “Annual Action Program of the President of Turkey in 2024”.

While little is known about this legal framework, it is still considered part of a strategy to escape the “gray zone” list of the Financial Action Task Force on Money Laundering (FATF), for countries measures to combat money laundering and terrorist financing need to be overcome.