Ruling Party Sources Deny Plan to Levy 40% Tax on Crypto Yields in Turkey

January 9, 2022 Bitcoin.com

Ava Labs and EV maker Togg to build smart contract-based mobility services

January 8, 2022 Coin Telegraph

Avalanche

The partnership aims to fast-track Togg’s Use-Case Mobility initiative, which involves producing cars with more functionalities as compared to traditional EVs.

Turkey’s electronic vehicle (EV) manufacturer Togg has announced a strategic partnership with Ava Labs to design and build smart contract-based services aimed at improving autonomous mobility.

Togg’s collaboration with Ava Labs, a team dedicated to supporting and developing the Avalanche public blockchain, was revealed at the CES 2022 event in Las Vegas. As Cointelegraph Turkey reported, the partnership aims to fast-track Togg’s Use-Case Mobility initiative, which combines different technologies and transportation solutions to produce cars with more functionalities as compared to traditional EVs.

According to the official announcement, Togg has been exploring use cases around blockchain and related technologies in EVs for more than a year. With Ava Labs’ partnership, Togg intends to infuse Internet of things (IoT) and machine-to-machine (M2M) communication to expand and accelerate its EV capabilities.

Togg will implement smart contracts and blockchain technology for allowing users to pick up a reserved scooter or taxi while charging their EVs, enabling seamless mobility. Gürcan Karakaş, the CEO of Togg said:

“Our collaboration with Ava Labs is built on taking the experience of Togg users to the next level, going beyond automobiles to empower partners, users and non-Togg users across the mobility ecosystem to benefit from this platform.”

Moreover, Ava Labs’ partnership will allow Togg to store vehicle maintenance and parts information over the Avalanche blockchain, which will be foundational to a reliable second-hand market.

Back in December, Dogecoin (DOGE) price went up by 25% soon after Tesla and SpaceX CEO Elon Musk announced plans to accept DOGE for Tesla merchandise.

Tesla will make some merch buyable with Doge & see how it goes
— Elon Musk (@elonmusk) December 14, 2021

As Cointelegraph reported, Data from Cointelegraph Markets Pro and TradingView showed DOGE/USD climbing over 25% to become the only major cryptocurrency to deliver gains on the day.

*DOGE/USD 1-hour candle chart (Bittrex). Source: TradingView*

Law Decoded: Three regulatory trends of 2021, Dec. 20–27

December 27, 2021 Coin Telegraph

bitcoin regulation

The year past saw some fundamental transformations in the relationship between state power and the digital asset space.

It is that time of the year: Singular events must be abandoned in favor of end-of-year, big-picture narratives and yearly lessons learned. As many governments across the globe finally had to face the rapidly mainstreaming realm of digital finance, the year is packed with developments in crypto policy and regulation that are impossible to fit into a neat little summary. However, it is possible to try and distill several major trends that have come to the fore during the past 12 months, and that will keep shaping the relationship among societies, state power and the crypto space as we roll into 2022.

Below is the concise version of the latest “Law Decoded” newsletter. For the full breakdown of policy developments over the last week, register for the full newsletter below.

U.S. Congress notices crypto

In 2021, crypto regulation in the United States ceased to be mostly the domain of unelected officials sitting on various financial regulatory commissions and within the Treasury Department. Federal lawmakers called more high-profile Congressional hearings on digital assets than in any previous year. Their command of crypto-related issues has also improved visibly. The executive branch still attempted to steer important decisions — the approach most vividly illustrated by the last-minute inclusion of crypto broker reporting requirements into the infrastructure bill — yet the backers of such course were likely caught off-guard by a vocal, concerted pushback from the industry and its allies on the Capitol Hill. Granted, not everyone in Congress is a Bitcoin buff, but there are still quite a few, and some are making crypto salient on their legislative agendas.

The emergence of crypto as a conspicuous matter of public policy in the age of partisan polarization has also raised a question of where each of the two major U.S. political parties stands on digital asset-related issues. The coming year will likely see further crystallization of partisan crypto stances.

Authoritarians lean toward the hardline

Another emerging rift can be observed in how various political systems have come to approach crypto depending on where they stand on the liberal-authoritarian continuum. Obviously, all agents of power strive to maximize the degree of control they exert over payment systems and the financial system more broadly, yet in 2021, those who make greater use of the free-market look more likely to co-opt rather than heavily restrict the digital asset space.

The approach exemplified by China and its outlawing of crypto trading and mining mark the heavy-handed end of the policy palette. The alternative is opening up to financial innovation and reaping the benefits of such openness at the cost of limited control.

The struggle between these two stances has been intensifying within several big economies that can be reasonably expected to opt for a more hardline scenario. While an imminent threat seems to have been averted in India, inconclusive signals emanating from Russia and Turkey suggest that forces championing the hawkish approach are extremely influential there.

Unprecedented rates of legal exposure

From El Salvador becoming the first crypto nation with a legal tender status for Bitcoin (BTC) to the U.S. Securities and Exchange Commission finally allowing a Bitcoin exchange-traded fund to the market, more people than ever now have a legal way to use cryptocurrency for payments and investment.

Still, narrative shifts driven by these historic advancements resonate far beyond the crypto bubble, leading to new waves of mainstream interest. With both the awareness and exposure on the rise, it gets harder for policymakers to ignore the new economic and social reality where Bitcoin and its siblings are present in the lives of millions. At this point, there is no stopping the virtuous cycle of global crypto adoption, and in 2022, there will be even less room for the powers that be to remain oblivious to crypto-driven social transformation.

Binance Turkey fined 8M lira for non-compliance against money laundering

December 26, 2021 Coin Telegraph

AML

MASAK found Binance Turkey guilty of violating the Law on Prevention of Laundering Proceeds of Crime, also known as the AML Law.

The Financial Crimes Investigation Board (MASAK), which serves as Turkey’s financial intelligence unit under the Ministry of Finance and Treasury, found crypto exchange Binance’s Turkey operations guilty of violating laws that intend to prevent the laundering of money acquired through criminal means. According to local news media Anadolu Agency, MASAK carried out an audit of Law No. 5549 on Prevention of Laundering Proceeds of Crime, also known as the AML Law.

The AML Law in Turkey requires companies to identify and verify the personal identification information of the customers on the platform, which includes details such as surname, date of birth, T.C. identification number (Turkey equivalent of a social security number) and type and number of identity documents. The law also requires businesses to immediately notify the government about suspicious activities within a 10-day period.

As Cointelegraph Turkey reported, the watchdog imposed the maximum possible administrative fine of 8 million Turkish lira for the alleged violation. Additionally, this timeline also coincides with the day President Erdoğan announced the completion of a crypto law draft that will soon be handed over to the Parliament for approval.

With this, Binance also becomes the first crypto business to get fined by the Turkish government. Moreover, MASAK is working closely with Financial Action Task Force (FATF), a global regulator against money laundering and terrorist financing, according to former Treasury and Cost Minister Lutfi Elvan:

“FATF has asked for measures to be taken against crypto trading platforms.”

In line with this request, MASAK has also agreed to report transactions that exceed the value of 10 thousand lira within 10 days.

Turkey's President Recep Tayyip Erdoğan confirmed the completion of a crypto law that will soon be handed over to the Parliament for mainstream implementation.

As Cointelegraph reported, the crypto law envisions a new economic model that can bolster Turkey’s effort to bring back the depreciating value of lira. Erdoğan also said that the recent inflation on Turkish lira is not related to mathematics but a matter of process — implying a possibility and potential of lira’s value growth:

“With this understanding, we intend to channel it to a dry spot. But the exchange rate will find its own price on the market.”

The Financial Crimes Investigation Board (MASAK) has fined Binance Turkey 8 million lira (nearly $750,000) after the crypto exchange failed the financial watchdog’s audit for monitoring Anti-Money Laundering (AML) compliance.

Turkish President Erdogan Says Cryptocurrency Law Is Ready as Crypto Regulator Fines Binance 8 Million Lira

December 26, 2021 Bitcoin.com

Turkey’s crypto law is ready for parliament, President Erdoğan confirms

December 25, 2021 Coin Telegraph

bills

Once implemented, the crypto law will implement a new economic model that can potentially help recover the lira's falling value.

Turkey's President Recep Tayyip Erdoğan has reportedly confirmed the completion of a crypto law draft that will soon be shared with the Parliament for mainstream implementation in the country.

In an effort to counter the falling value of the Turkish lira, President Erdoğan shared plans to implement a new economic model while speaking at a press conference in Istanbul. As reported by local media NTV, Erdoğan said that the cryptocurrency bill is ready, adding:

“We will take steps on this issue by sending it to Parliament without delay.”

Acknowledging the country’s recent inflationary episode, Erdoğan said that the currency event is not related to mathematics but a matter of process — implying a possibility and potential of lira’s value growth:

“With this understanding, we intend to channel it to a dry spot. But the exchange rate will find its own price on the market.”

With the introduction of the new crypto law, the president envisions Turkey to become one of the 10 largest economies in the world. Speaking about the rising prices in the region, he shared plans to follow the people who change the labels of the price list organizers several times a day. “We want them to lower the dollar's increases now,” he concluded.

On Nov. 23, Bitcoin holders in Turkey avoided an accelerating currency collapse as the lira lost 15% against the U.S. dollar in a single day.

BTC/TRY 1-day candle chart (Binance). Source: TradingView

As Cointelegraph reported, the fiat currency’s fall resulted in Bitcoin (BTC) reaching a new all-time high against the Turkish lira. The BTC/TRY trading pair reached 723,329 Turkish lira on Binance.

Bitcoin hits $49K as BTC price gets unlikely boost from Erdoğan’s Turkish lira tinkering

December 21, 2021 Coin Telegraph

Bitcoin

The man who declared “war” on crypto in September helps fuel snap overnight gains.

Bitcoin (BTC) rebounded over 5% on Dec. 21 as a dramatic turnaround in the fortunes of the Turkish lira boosted investors’ confidence.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

Wishing on a sentiment flip

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD bouncing overnight as the lira shot up as much as 40% against the United States dollar.

The move came as Turkey’s president, Recep Tayyip Erdoğan, announced sweeping measures to protect consumers and attract lira investors. USD/TRY had previously hit all-time highs of near 19, half of which had occurred in the last two months.

In an ironic twist, Erdoğan himself had come out against cryptocurrency in September, declaring Turkey to be “at war” with the industry.

The switch-up fuelled Bitcoin and altcoins alike, with 5% gains mirrored across the major cryptocurrency charts Tuesday.

Cointelegraph contributor Michaël van de Poppe was among analysts noting the correlation.

#Bitcoin bounces nicely today.#Ethereum bounces even better today.

The actual reason?

Turkish Lira makes a strong bounce.

— Michaël van de Poppe (@CryptoMichNL) December 20, 2021

“Good chances we’re done with the correction,” he added in one of various Twitter posts about spot price action on the day.

“The longer we stay here, the faster the sentiment flips.”

A look at popular sentiment gauge the Crypto Fear & Greed Index reflected modest relief entering thanks to the uptick, the mood rising two points to 27/100 or from “extreme fear” to “fear.”

*Crypto Fear & Greed Index. Source: Alternative.me*

Analysts eye evaporating unrealized gains

Data covering hodler behavior, meanwhile, pointed to an impending watershed moment repeating itself when it comes to Bitcoin profitability.

Released by monitoring resource Whalemap, it showed that BTC at a loss should soon pass BTC being hodled with unrealized gains. Historically, upside resumes when such crossovers occur.

There are around 4 million #Bitcoin hodled at prices above $50,000. This equates to around 20% of the entire 870B market cap. All of these coins are currently at a loss. pic.twitter.com/n4dx7NHG8R
— whalemap (@whale_map) December 20, 2021

“Not quite there yet but looking promising,” the Whalemap team told Telegram subscribers, adding in comments to Cointelegraph that in principle, “the more unrealized losses, the better.”

Bitcoin wobbles below $46K as 1 BTC passes 800K Turkish lira for the first time

December 20, 2021 Coin Telegraph

Bitcoin

Bitcoin price weakness is arguably only welcomed by those who chose it over saving in lira this week.

Bitcoin (BTC) fell over 5% from local highs through Dec. 20 as macro tensions persisted into the new week.

Analyst: Brace for volatile end to 2021

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it fell back below $46,000 overnight on Sunday, reaching lows of $45,787 on Bitstamp.

The pair had hit $48,300 before a reversal took hold as Asian stocks opened the week on a limp note thanks to Coronavirus.

"The U.S. stock markets will be having a pretty bad day when it comes to today. Also, the European stock markets will be opening with red numbers," Cointelegraph contributor Michaël van de Poppe warned in his latest YouTube update.

"We are actually making ourselves ready for some heavy volatility in the last few weeks of this year."

Like others, Van de Poppe highlighted strength in the U.S. dollar providing extra friction for risk assets such as Bitcoin. With the U.S. dollar currency index (DXY) facing resistance, Bitcoin is battling to maintain support in a classic inversely correlated move.

"What you want to see in a reversal structure is something like we have been seeing in September as well," he continued, referencing the $40,000 breakout at the end of that month.

Max pain for Turkish lira holders

With little to inspire Bitcoin traders overall, only events in Turkey provided some form of a silver lining for those who opted to diversify into BTC.

Following a fresh commitment to lower interest rates from President Recep Tayyip Erdoğan, Turkey's national fiat currency, the lira (TRY), fell to new record lows of 17.8 against the dollar.

New week, new lows. #Turkey Lira plunges to another All-time low after Erdogan says Islam demands lower rates. Now down 57.4% YTD. pic.twitter.com/No6j5flgbf
— Holger Zschaepitz (@Schuldensuehner) December 20, 2021

Taking its year-to-date losses to near 60%, the latest slide brought the focus back to Bitcoin and other cryptocurrencies as a potential hedge against extreme economic policy.

BTC/TRY passed 800,000 in a record-breaking move overnight, having doubled in just two-and-a-half months.

To add insult to injury, the lira fell below parity with the embattled Egyptian pound (EGP) for the first time in history.

Erdogan has had a fraught relationship with cryptocurrency and has taken steps to banish the industry from Turkish consumers.

Major Turkish Crypto Exchange Coinzo Shuts Down

October 12, 2021 Bitcoin.com

Chinese blockchain project BSN expands to Turkey and Uzbekistan

October 11, 2021 Coin Telegraph

China

Chinese blockchain project BSN comes to Turkey and Uzbekistan after launching the BSN Hong Kong and Macau portal.

The Chinese government-backed blockchain project, the Blockchain-based Service Network (BSN), continues expanding its global presence by setting up two new portals in Turkey and Uzbekistan.

Red Date Technology, the architect behind the BSN project, has signed an agreement with Turkish consultancy firm, Turkish Chinese Business Matching Center (TUCEM), to launch two international BSN portals in Turkey and Uzbekistan in late December 2021.

Established in 2006, TUSEM became a major economic cooperation hub between Turkey and China. The company will be the exclusive operator of the two new BSN portals offering blockchain-as-a-service (BaaS) in Turkey and Uzbekistan.

The new portals will allow blockchain developers in Turkey and Uzbekistan to build BaaS applications using the global BSN portal hotsing major blockchains like the Ethereum network, Algorand, Polkadot, Tezos, ConsenSys Quorum, Corda and others. The initiative aims to solve major challenges associated with developing blockchain applications, enable blockchain interoperability and cut development costs.

“Turkey has long played a role as a bridge between Asia and Europe and so it is fitting that the first BSN portal outside of Asia will be launched there,” Red Date Technology CEO Yifan He said.

Mehmet Akfırat, president of TUCEM and head of BSN Turkey, said that the BSN’s Turkish portal will contribute to social development and financial inclusion. According to the exec, both Turkey and Uzbekistan are highly engaged in blockchain development.

He told Cointelegraph that BSN doesn’t choose the locations for its international portals. “As long as we have good local partners in some regions, we don't really mind where they are,” the exec said, adding that BSN is also talking to potential partners from the United States, Europe and Australia.

The CEO also noted that BSN does not operate its international portals. “They are all built and operated by our local partners. They own the portals, which leverage BSN infrastructure to build the most powerful BaaS site with little cost,” He said.

BSN recently launched a Hong Kong and Macau portal on Sept. 1, contributing to the development of more than 30 new blockchain projects. BSN also plans to set up an international BSN portal in South Korea in November.

In January 2021, the BSN announced plans to build a universal digital payment network for central bank digital currencies (CBDCs) — this following even earlier intentions to support stablecoins for various services on the BSN ecosystem.

However, according to He, the BSN is no longer involved in “any CBDC-related projects” and has also abandoned its stablecoin plans.

“BSN no longer will integrate stablecoins. We move that plan to another entirely new project, which has no association with BSN. For BSN, we are focusing on expanding footprints in different countries,” He told Cointelegraph.

Turkey