According to a meeting chaired by Deputy Prime Minister Mehmet Simsek, a detailed statement was issued by Turkey’s treasury secretariat, in a move by the Financial Stability Committee to create a working group (a team of experts charged with the task of regulating and monitoring developments in cryptocurrency). The working group was inspired by developments in both global and local financial markets.
Purpose of the Working Group
The purpose of the group is to assess the ways through which the banking sector can be strengthened in accordance with international standards. As a result, the group will be charged with formulating regulatory requirements and other relevant information, for banks and other financial entities in the country.
Although cryptocurrencies and Bitcoin are not legal tenders in the country, the move by the treasury secretariat to create the working group will assist the public with helpful information about the risks that investors in cryptocurrencies would have to be aware of.
The statement by the treasury further explained that currently there is no regulatory or legal basis in the cryptocurrency universe, and as a result, innocent investors are being lured by the promise of making huge, fast profits. They then end up making financial losses. The statement issued indicated, in addition, that criminals find cryptocurrencies to be a safe haven for extorting money through fraud. This is because they eliminate the need for a central authority or “surveillance practices to obtain initial capital”.
Warning to Cryptocurrency Enthusiasts in Turkey
The treasury secretariat also warned that although cryptocurrencies are regarded as profitable investments by some people, they can be used to conduct illegal activities as they operate in a market that is not inspected or regulated by any central official authority, that guarantees trust within the industry.
Further warring was also issued in a statement byTurkey’s Financial Stability Committee, at which investors involved in cryptocurrency were called upon to exercise caution so as not to make losses or “suffer any damage”. Cryptocurrency enthusiasts in Turkey were also asked to be aware of the risks and negative sides to dealing in crypto.
Do you think the move by the Turkish treasury secretariat to formulate a group to monitor and regulate cryptocurrencies is a positive or negative move for cryptocurrency market?