It is very important to know classical financial products and services well in order to understand crypto assets correctly. There are many studies on financial literacy in our country. The aim of these projects and studies is to enable people to better understand the financial product and service markets by gaining knowledge of terminology and data analysis. When it comes to crypto assets, the products and services associated with these assets offer an alternative to classical financial products and services.
In this respect, it is possible to state that operational or legal decisions about many applications in the crypto ecosystem are made by making comparisons with known products. Of course, let’s note right away that not every analogy gives healthy results. In other words, it is extremely risky and wrong to always sit within the framework of similar financial instruments and applications, and to perceive crypto products and services in the same way. One of them is staking applications, which are widely used in crypto. Let us now analyze this concept and its applications from the perspective of the traditional financial market, as appropriate to its nature.
What is ‘Stake’ or ‘Staking’?
The word “Stake” comes from English. ‘StakingThe word ‘ does not have an exact equivalent in Turkish. In the crypto world, it usually has a meaning as “holding or holding”. In this article we directly “stake” We will use the term. ‘Staking‘ or simply to explain staking activity, we can say that it is a process, application or service for earning by locking cryptocurrencies within the system.
Staking offers crypto holders a way to run their digital assets and earn passive income without the need to sell them.
In staking, network users can profit from this by committing to keep or store cryptoasset types in their virtual wallets for a predetermined period of time. Crypto assets locked in the system cannot be transferred for a certain period of time or used for other transactions. In short “Staking” It is a system based on earning more crypto assets from your crypto assets over time, similar to the interest income you receive from your bank account. For it to be a concise statement it can be called “staking the end of HODL”. The main question here might be: Can crypto staking be promised fiat money? Should Yosa crypto necessarily be staked with the same kind of crypto promise? Or, are services and services that promise crypto income primarily on the staked crypto legal?
In our view, since the crypto asset is not fiat money, it is legally possible to promise and give fiat money in exchange for staking the crypto asset. This is not a banking service or activity. Because stakes are not fiat money. For this reason, there is no such thing as collecting deposits or giving loans here. To think otherwise would attribute fiat money to crypto assets, which is a completely different discussion. Again, crypto staking can be treated as crypto earning, one type of crypto staking versus another type of crypto staking.
Is Your Staking Helpful?
The biggest benefit of staking with PoS is that it doesn’t waste huge amounts of processing power. Staking is also useful for balancing supply and demand as it limits the amount of crypto assets in circulation. The less money there is in circulation in a staking crypto-asset chain, the more likely it is to increase in value. That is, the more the cryptocurrency is staked, the less likely the price will drop.
Generally, in these PoS networks, users can participate in the choices made regarding the future of the network and gain a voice. This has made staking more attractive.
Staking opens up new avenues for those who want to get involved in blockchain management and can be an easy way to earn passive income just by holding coins. As staking becomes easier, barriers to entry into the blockchain ecosystem will be removed. However, it is necessary to consider that staking can also involve risks. Because locking funds with smart contracts carries the risk of software vulnerabilities.
Current Place of Staking in Law
In order to be able to talk about the place of staking in the legislation, it is a preliminary matter to first determine the legal nature of crypto assets. As you know, if the cause is a mountain, the events are hills.
Published in the Official Gazette dated April 16, 2021 Regulation on Non-Use of Crypto Assets in Paymentsat (”Regulation”) cryptoassets are defined as assets that are created virtually and distributed over digital networks using distributed ledger technology or similar technology.
For this reason, we cannot incorrectly qualify crypto assets as fiat money, fiat money, electronic money, payment instruments, securities or other capital market instruments. Because there are crypto assets that show these features. However, it cannot be said that staking activity is against the Regulation, since the Regulation does not actually prohibit crypto assets and aims not to be used only for payments.
also 1567 numbered Law on the Protection of the Value of the Turkish Currency (”Law”) and Decision No. 32 on Protecting the Value of Turkish Currency (”Decision”) is not prohibited to create a crypto asset account. In addition to the fact that crypto assets are not regulated in the Law and Decree, it is also legally impossible to include crypto assets in one of the “forbidden transactions with foreign currency”, which are counted individually in accordance with the limited number principle in the law. In addition, the activity of creating foreign currency/currency deposit accounts, which we can liken to staking activity, is not prohibited in the context of the Law and Decision. Therefore, it should be concluded that the staking of cryptocurrencies is not prohibited by the legislation. As you know, everything that is not expressly prohibited in the field of private law is allowed. For this reason, it seems legally possible for all crypto assets to be subject to staking, from stable crypto assets to crypto assets with foreign exchange or gold backed assets.
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