Türkiye May Become Crypto Friendly As Monetary Policy Committee Gets New Member

Turkish President Recep Tayyip Erdogan recently made a decision wherein Professor Fatma Ozkul, a distinguished expert in crypto assets and blockchain technology, has been designated as a member of the local Central Bank Monetary Policy Committee. This selection was officially confirmed on December 22nd, 2023.

Educational and professional background

Professor Ozkul, who has been a faculty member at the Istanbul Marmara University since 2012, brings a considerable wealth of expertise in accounting, finance, and auditing to her new position. Her academic pursuits extend to cutting-edge areas, particularly blockchain technology and digital assets. Notably, she authored a book on the accounting of crypto assets in 2022, demonstrating her commitment to comprehending the consequences of blockchain and crypto assets on the financial landscape.

It is worth mentioning that the decision to include Professor Ozkul in the Monetary Policy Committee is unlikely to alter the existing course of monetary policy. Her recent emphasis on blockchain, crypto assets, and their financial implications aligns with the local increasing interest in digital financial ecosystems.

A new approach towards crypto

The Turkish Central Bank has been actively exploring the crypto market, having introduced a digital Turkish Lira collaboration platform in 2021. Subsequent tests of digital Lira transactions in late 2022 marked a significant step toward embracing blockchain-based financial systems.

Moreover, the local economic landscape witnessed a gradual surge in crypto adoption, positioning Türkiye as the fourth-ranked nation globally in raw crypto transaction volumes. Between July 2022 and June 2023, the country recorded approximately $170 billion in crypto activity, following the United States, India, and the United Kingdom.

As crypto transactions gain momentum, Turkish authorities are reportedly contemplating regulatory measures for the crypto market. The focus is on licensing and taxation, with the goal of removing the country in the grey list of the FATF. Anticipated regulations are expected to establish specific licensing requirements, covering aspects like capital adequacy standards, digital security enhancements, custody services, and reserve verifications.