Understanding the New Presidential Program
In an exciting twist, Turkey recently rolled out its 2024 Presidential Annual Program, published on October 25 in the Official Gazette. One of its key objectives is to establish concrete regulations for cryptocurrencies within 2024. This is akin to finally deciding on the dress code for a party that was supposed to end last year!
Defining Crypto Assets
Article 400.5—nestled among nearly 500 pages of legalese—briefly touches on the need to define crypto assets. This is particularly crucial for tax purposes. Imagine trying to tax a ghost! Currently, crypto asset providers, such as exchanges, are awaiting their official titles. Until then, they remain enigmatic figures in the realm of finance.
The Fallout of Thodex
In a stark reminder of the challenges faced by the crypto industry, Faruk Fatih Özer, ex-CEO of the notorious Thodex exchange, received an eye-watering 11,196-year prison sentence. That’s right, a year for every day he left behind a trail of tears and lost investments when Thodex imploded in 2021. If only there were a similar sentence for those who impersonate a Saudi Prince in your DMs!
Turkey’s Crypto Demand
According to a 2022 survey, Turkey ranked second globally for crypto searches, with 5.5% of the population looking to explore the world of virtual currencies. Interestingly, the usage of crypto shot up by eleven times in 2021 due to the inflation crisis plaguing the Turkish lira. Clearly, people were looking for an escape route faster than the last slice of pizza at a party!
The Digital Lira Initiative
On a brighter note, Turkey has also made strides with its Central Bank’s digital currency, the digital lira. With the first trial concluded in December 2022, there’s open speculation about further tests slated for 2024. President Erdoğan has been vocal in his support for this project, and while the nation hasn’t fully committed yet, one can only hope it leads to a smoother transaction experience—even better than ordering an Uber!
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