Crypto industry leader, Tether Operations Limited, and technology and strategy company, BTguru, have entered into a Memorandum of Understanding (MoU) to assess digital assets educational initiatives in Turkey (Türkiye). The MoU aims to develop comprehensive programs introducing stakeholders to blockchain and peer-to-peer technology, and explore real-world asset tokenization use cases for banks. This collaboration could […]
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Turkey Rules out Taxes on Crypto Profits, Considers Limited Transaction Tax
Turkish Treasury and Finance Minister Mehmet Simsek has stated that there are no current plans to impose taxes on profits from cryptocurrencies. However, he mentioned that the government is considering implementing a “very limited” transaction tax on these assets, though the specifics have not been determined. This statement was made to clarify earlier reports by […]
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Turkey Detains 127 Crypto Ponzi Scheme Co-Conspirators, Seizes Assets Worth Over $31 Million
According to Turkish authorities, the country’s law enforcement agencies have disrupted a criminal syndicate that lured unsuspecting residents into investing in a Ponzi scheme disguised as a cryptocurrency investment. The syndicate is reported to have swindled billion from investors who were deceived by the scammers’ promise of high profits and zero risks. During the […]
Bitcoin News
Turkey Prepares New Crypto Law to Align With International Standards
Turkey is preparing to present a new law to regulate crypto assets to Parliament. The legislation, aimed at aligning with international standards and reducing risks associated with crypto transactions, will enforce strict regulations on the licensing and operation of cryptocurrency trading platforms by the Capital Markets Board. It will also ensure the safe custody of […]
Bitcoin News
Cryptocurrency Regulations Set to Help Minimize Risks Associated With Crypto Trading — Turkey Finance Minister
Mehmet Simsek, the Turkish Finance Minister, recently revealed that a draft of his country’s crypto regulations is now in the final stage. Simsek said that once they come into force, the new regulations will help minimize the risks that are associated with trading crypto assets.
Minimum Operating Standards
According to Turkish Finance Minister Mehmet Simsek, the draft cryptocurrency regulations, which are expected to help the country get off the Financial Action Task Force (FATF)’s grey list once they become law, are now in the final stage. Simsek added that once they come into force, the new regulations will also minimize the risk of trading crypto assets.
In his remarks published by Reuters, the Finance Minister revealed the name of the body which is going to issue licenses to crypto platforms as well as the required operating standards.
“Crypto asset trading platforms will be licensed by the Capital Markets Board (CMB), and minimum operating standards will be required … including some conditions for founders and managers, organizational obligations, capital requirements,” Simsek said.
In October 2021, Turkey was placed on the grey list after the country’s anti-money laundering and terrorist financing mechanisms were deemed ineffective by the Financial Action Task Force (FATF). Since then, Turkey has been attempting to address some of the issues or concerns raised by the FATF.
According to a July 2023 report by the FATF, Turkey had made some progress in addressing most of the technical compliance deficiencies that were revealed in the watchdog’s 2019 Mutual Evaluation Report. The country was subsequently re-rated on six recommendations, the FATF said. However, the global watchdog also noted in the same report that Turkey’s ability to regulate virtual asset service providers (VASPs) may be affected by the lack of a law requiring them to license or register.
Meanwhile, Simsek suggested that Turkey’s goal of making crypto trading safer does not mean his country is against emerging technologies like the blockchain. He explained:
We aim to pave the way for the development of blockchain technology and the crypto asset ecosystem.
What are your thoughts on this story? Let us know what you think in the comments section below.
Report: Turkey Exits From Foreign Exchange Protected Deposit Program
On Jan. 1 Turkey ended its two-year-old foreign exchange (FX)—protected deposit program in what is seen as another step towards a return to orthodoxy. Treasury and Finance Minister, Mehmet Simsek also signaled the start of what he called a “permanent improvement in the current account.”
Turkey’s Policy U-Turn
Turkey’s Treasury and Finance Minister, Mehmet Simsek, recently disclosed that the country will end its foreign exchange (FX)-protected deposit program, also known as KKM, in 2024. This move is the latest in a series of policy u-turns that Turkey has made in the last couple of months.
Programımızın olumlu sonuçlarını yeni yılda da almaya devam edeceğiz.
2024 yılı;
•Yıllık enflasyonda düşüşün başladığı,
•Rezerv yeterliliğinin daha da arttığı,
•Kur korumalı sistemin sonlandığı,
•Cari açıkta kalıcı iyileşmenin başladığı,
•Bütçe disiplininin tesis…— Mehmet Simsek (@memetsimsek) December 31, 2023
Following his re-election in May 2023, President Recep Tayyip Erdoğan immediately signaled the country’s return to orthodoxy by appointing Simsek as the Finance Ministry head. The central bank later all but confirmed the major policy shift by sharply raising interest rates.
Before his re-election, President Erdoğan and his government resisted devaluing the lira or raising interest rates. Instead, the government pursued several policy measures including the KKM program whose objective was to bolster the lira and halt the apparent dollarization of bank deposits. Under the program, Turkish residents who maintained their savings in local currency were guaranteed returns that compensated for any exchange rate-related losses.
However, in his Dec. 31 post on X, Simsek, one of the former Wall Street bankers in Erdogan’s government, said:
“2024 will be a year [where] annual inflation starts to decline, reserve adequacy increases further, the foreign exchange protected system ends, a permanent improvement in the current account begins, and fiscal discipline is established.”
Simsek confirmed Turkey’s exit from the KKM program just a few months after he suggested that this process could be achieved without offering incentives. According to a state-run news agency, banks were expected to stop offering FX-protected lira deposit accounts for savings on Jan. 1.
What are your thoughts on this story? Let us know what you think in the comments section below.
Crypto Exchange Thodex Founder Denies Fraud Charges in Turkey
The founder of failed cryptocurrency exchange Thodex has denied all fraud-related allegations in a Turkish court. The crypto entrepreneur was handed over to Turkey by Albanian authorities earlier this year to face charges for his leading role in running the now defunct platform.
Alleged Crypto Fraudster Faruk Ozer Claims He Was Framed in Thodex Case
Faruk Fatih Ozer, founder and chief executive of the Turkish crypto exchange Thodex, has denied defrauding investors on the trading platform, local media reported. On June 12, he made his first court appearance in his home country after his extradition from Albania in April.
Thodex collapsed in 2021 after attracting 400,000 users and Ozer fled Turkey with a reported billion of investor money. He was wanted on an Interpol red notice until his arrest by Albanian law enforcement authorities on Aug. 30, 2022.
During the hearing on Monday, part of a trial against 21 people charged in connection with the exchange, Ozer claimed that he was framed, rejecting all allegations of fraud against him. Seven of the other defendants are also in detention, the Hurriyet Daily News noted in a report.
“Our initial purpose was to engage in e-commerce. As I dealt with e-commerce, cryptocurrencies caught my attention,” the businessman explained. “Later, I realized I could profit from it through my social circle, so I shifted the company in that direction … My entire life became intertwined with the digital world in order to establish a cryptocurrency exchange,” he was quoted as saying.
Ozer insisted more than once that all decisions made in the company were his own, pointing out that his sister, Serap Ozer, who was on the exchange’s management team, had no real authority. He was also the only person who checked all bank transactions made by the exchange.
“It is a black mark on the legal system that my employees have been imprisoned for two years,” Faruk Ozer stated in the court room. According to the indictment filed by the Chief Public Prosecutor’s Office in Istanbul, they have been charged with establishing a criminal organization, committing fraud and money laundering. Prosecutors seek a maximum of 40,564 years of imprisonment in total for them for these crimes.
Do you think Thodex founder Faruk Ozer will be convicted on the fraud charges? Tell us in the comments section below.
Fugitive Crypto Exchange Founder Faruk Ozer Extradited to Turkey
Albania has extradited the founder of Turkish cryptocurrency exchange Thodex to his home country where he is charged with defrauding investors. The crypto entrepreneur disappeared after his trading platform unexpectedly went offline in the spring of 2021 and was arrested last year by Albanian law enforcement.
Albania Hands Over Alleged Crypto Fraudster to Turkish Authorities
Faruk Fatih Ozer, founder and CEO of failed crypto exchange Thodex, was extradited to Turkey by the Albanian Ministry of Justice acting on the order of the country’s Supreme Court. A plane carrying Ozer landed in Istanbul on Thursday morning, Turkish media informed.
According to a report by the Anadolu Agency, the Istanbul Airport Police Department took custody of Ozer on arrival. The 27-year-old man was then taken to a police station and is expected to undergo a health checkup.
Ozer fled Turkey after the sudden collapse of Thodex two years ago. The exchange had attracted around 400,000 users during the crypto boom in the country. He was last seen on footage from Istanbul Airport and was believed to have left for Albania with a reported billion of investor money.
Turkey issued an international arrest warrant for the chief executive of Thodex in April 2021 and he was wanted with a red notice by Interpol. Ozer has been fighting his detention in Albanian courts since his arrest on Aug. 30, 2022.
The Elbasan Court of First Instance extended his detention on Sept. 2 and the Durres Court of Appeals upheld the decision on Sept. 20. In November, The Elbasan court authorized his extradition to Turkey, which was later approved by the Supreme Court in Tirana.
Turkish authorities have charged 21 people in connection with the exchange out of over 60 detained during the investigation. Prosecutors seek prison sentences totaling thousands of years for the founders and executives accused of committing fraud and money laundering while pulling an exit scam.
Do you think Thodex founder Faruk Ozer will be convicted of his alleged crimes? Share your thoughts on the case in the comments section below.
Russia Developing Payment Gateways With Partners Like Turkey, Mulling Crypto Settlements
Bank of Russia is building a system of gateways with foreign payment networks and is now working with Turkey in this field. Russia’s monetary authority would also allow the experimental use of cryptocurrencies in foreign economic activities, its head was quoted as saying.
Russia’s Central Bank ‘Actively Working’ With Turkey on New Payment Gateways
The Central Bank of Russia (CBR) is developing payment gateways with foreign payment systems and is actively working with Turkey in this area, Governor Elvira Nabiullina said at a meeting with lawmakers in the State Duma, the lower house of Russian parliament.
Russians visiting Turkey have been experiencing problems with payments since Visa and Mastercard suspended Russian operations as part of sanctions over the war in Ukraine. Starting from September last year, the Russian Mir cards are no longer accepted in a number of countries.
During that month, Turkish banks also quit processing payments with Mir after a U.S. warning that financial institutions working with CBR’s National Card Payment System, the Mir operator, risk being involved in circumventing Russia sanctions. At the time, Turkish media reported that President Recep Tayyip Erdogan had suggested establishing a new payment system between the two countries.
“We have built a system of gateways between our payment systems so that we can pay. This does not work in all countries … Nevertheless, such opportunities will appear,” Nabiullina said, quoted by the Interfax news agency.
Alternative options are being discussed with each country individually, the governor elaborated, including using prepaid cards or cards issued by the payment systems of the respective nations. Members of Turkey’s tourism industry proposed to launch cards that Russians can load with rubles and use during their stay in the country.
Russia has been mulling over ways to bypass financial restrictions imposed by the West over its invasion of Ukraine. One of the considered options is to use digital assets, including decentralized cryptocurrencies which are yet to be comprehensively regulated in the country.
During the meeting in the Duma, Nabiullina also indicated that while the regulator remains opposed to crypto payments inside the country, it is open to allowing international crypto settlements under experimental legal regimes. These will be conducted through authorized organizations, she explained, quoted by Tass, adding that the scheme can work with other digital financial assets as well.
Do you think Russia, Turkey and other nations will launch alternative fiat payment gateways and use crypto in settlements? Share your thoughts on the subject in the comments section below.
Cryptocurrency Exchanges Offer Assistance to Earthquake-Hit Turkey
Major crypto exchanges have offered to help the people of Turkey to overcome the consequences of this week’s devastating earthquake. While the crypto industry pledged support, the country’s financial authorities allowed the raising of relief funds through cryptocurrency donations for a charity organization.
Leading Exchanges Commit to Supporting the Victims of the Earthquake in Turkey
The global crypto trading sector has quickly reacted to the news of the deadly earthquake that brought destruction to parts of Turkey and the region. Over the past few years, the country became a growing crypto market and digital asset exchanges are now offering to help Turkish traders, their families, and neighbors in need.
Binance, the world’s largest trading platform for cryptocurrencies, announced on Tuesday it will airdrop 0 of BNB tokens to all of its users living in the most affected areas. The company said it will identify the customers that qualify based on proof of address and disperse a total of around million. It also emphasized:
Crypto transfers are now increasingly being used to deliver financial aid to disaster victims as they provide fast, low-cost, borderless, and transparent transactions.
Furthermore, Binance Charity is now accepting donations in several coins that will be converted to Turkish lira and sent to an NGO. “We hope that our efforts will bring some relief to those affected. We are also calling on our industry peers to once again come together to offer support in these times of crisis,” Binance founder and CEO Changpeng Zhao was quoted as saying.
Competitors like Huobi, Okx, Bybit, and others have promised to support Turkey as well. Okx will provide 1 million Turkish lira (over ,000) in financial assistance for the victims of the natural disaster, according to a statement by its Chief Marketing Officer Haider Rafique. Bitget is donating the same amount of money.
Huobi CEO Justin Sun unveiled the establishment of a 2 million lira relief fund by the Tron exchange and blockchain in memory of those who lost their lives in the powerful earthquake. The death toll from the 7.8 magnitude tremor, which struck Southeastern Turkey and Western Syria on Monday, continues to rise and is already exceeding 9,000.
Coinex said in a Facebook post it’s ready to help people in both countries while Bitmex tweeted it will donate the proceeds of its trading competition this week to the Turkish Red Crescent. Bitfinex and Tether expressed their condolences and pledged 5 million lira towards immediate humanitarian aid and recovery efforts. They will also “seek ways to provide continued support towards helping Turkiye rebuild for the future.”
Our thoughts are with all the people who have been affected by the tragic Turkey-Syria earthquake today.
BitMEX will be donating the proceeds of this week’s Trading Competition to the @RedCrescent, and we encourage those who can donate to do the same. #GeçmişOlsunTürkiye
— BitMEX (@BitMEX) February 6, 2023
Singapore-based crypto exchange Bybit announced it will send 0,000 to Turkey’s Disaster and Management Authority (AFAD). Meanwhile, the country’s Financial Crimes Investigation Board (MASAK) approved an initiative by a charity called Ahbap to raise donations in cryptocurrency, according to its founder, Turkish singer Haluk Levent. The campaign will continue until Feb. 13
Do you expect other companies from the crypto industry to join these exchanges in helping Turkey to deal with the disaster? Tell us in the comments section below.