The echoes of the 13th President Recep Tayyip Erdoğan’s announcement of the new cabinet members continue. Returning to the seat of the Ministry of Treasury and Finance after a five-year hiatus, Mehmet Şimşek’s signal of “return to rational policies” at the commissioning ceremony has also energized the world of economy. Likewise, it is a matter of curiosity what kind of attitude the new economy management will take on the regulation studies to be brought to crypto, which has been going on for about two years.
Speaking exclusively to Kriptokoin.com, academician Tansel Kaya, one of the leading names in the Turkish crypto industry, is also a graduate of Boğaziçi University Computer Engineering. Saying, “We are facing a cabinet that is more compatible with the European Union and the USA,” Kaya reminded that Mehmet Fatih Kacır, who was appointed to the Ministry of Industry and Technology, and Gaye Erkan, one of the names that came to the agenda to be the head of the Central Bank, is from the Bosphorus and says: There is no question of their hard work and education. Bosphorus people are not normally involved in politics, they generally turn to the private sector. This time, these people are coming to the public service, I think it is a win for the country.”
“Mehmet Şimşek was distant to crypto in the past”
“Mr. Treasury and Finance Minister Mehmet Şimşek is an experienced name. He is distant to the topic of crypto. He even compared crypto to Tulip Frenzy. But of course, it is necessary to perceive these statements dating back to 2018, with the conditions of the period,” Kaya said, adding: “I don’t know how much his views have changed, but he says we need to return to rational policies.”
“The negative view of crypto in the USA may affect us”
Commenting on Şimşek’s message of “return to rational policies” during his assignment, Kaya said, “When we say rational thought, it means that the dominant views of the financial world in the USA and Europe will be adopted. This reveals a more distant picture to crypto. The US paints a rather negative picture regarding crypto. Senator Elizabeth Warren is also known for her negative views on crypto. I worry that the negative view of crypto in the US will spread to us,” she says.
“European Union regulations can be taken as a guide in regulations”
Reminding that the Crypto Asset Markets Regulation (MiCA), which the European Union has implemented recently, recognizes crypto assets, classifies them, regulates exchanges, and imposes penalties for corruption such as insider trading in crypto trading, Kaya says: “These are good things. Maybe there can be a direction in this direction, MiCA guide can be taken. I think that the direction they will choose will be in this direction. When you look at it, MiCA is the most tangible regulation ever made.”
“Crypto gourd in the middle”
There are many claims about crypto regulations, which have been worked on for about two years and some drafts were shared with the public as a result of the Workshops held in Ankara on the subject. While some expect strict regulation, some expect relatively free legislation. However, issues such as transaction-based tax are among the topics discussed by the industry. “I expect a low percentage transaction-based tax, like the foreign exchange tax on foreign exchange transactions. In fact, crypto exchanges want this instead of paying 18 percent VAT on transactions,” said Tansel, adding: “Crypto is in the middle like a pumpkin right now. It will definitely be desired to generate income from here.”
Referring to the meeting of former Treasury and Finance Minister Nureddin Nebati with Binance CEO Changpeng Zhao (CZ), Kaya said, “The video conference with CZ was not very appropriate for the state procedure. In the past, events such as the blockchain conference attended by the President can be organized more frequently, and private meetings can be held by inviting names such as CZ.”
Will the “blockchain is good, cryptocurrencies are gambling” view to persist?
It is a fact that the statements made by Treasury and Finance Minister Mehmet Şimşek on cryptocurrencies and blockchain technologies in the past are in line with President Recep Tayyip Erdoğan’s recent statements on the subject. As a matter of fact, President Erdoğan, who participated in the Blockchain Istanbul Program held at Istanbul University in October 2022, said, “I advise our young people to take part in the change of innovations such as blockchain technology and turn to larger and more fertile channels instead of turning to crypto money gambling that has no basis.” Our goal is to reach the position of being followed, not a consumer, but a designer, producer, guiding and follower in this field as well.”
Kaya defends the view that “We do not want to put dust on cryptocurrencies, but when you look at it, there have been many negative developments in the past”, and adds: “There is a negative perception in the society that Thodex, FTX, LUNA and NFTs are ponzi. I think that the President and the Minister have some justification when they say ‘Blockchain is good, but cryptocurrencies are gambling’. After all, we are talking about an unregulated structure.”
The fate of the digital Turkish lira
Another issue that Turkey is working on regarding blockchain technologies is the Digital Turkish Lira. In the statement made by the Central Bank of the Republic of Turkey (CBRT) in December 2022, the first payment transactions on the Digital Turkish Lira Network were successfully carried out within the scope of the first phase studies of the Digital Turkish Lira Project and the closed circuit pilot application tests will continue in the first quarter of 2023. had been announced. So, what will be the fate of the Digital Turkish Lira with the new economy management? Kaya said, “I listened to a speech by Mehmet Şimşek in 2018: He said that we want to produce Digital Turkish Lira similar to cryptocurrencies. Indeed, the ministers who came after him continued this project. As a mobile application, I saw the demo. You need banks for banking applications. But here, the transactions belong entirely to the citizens,” he says.
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