Turkey's Erdogan says crypto law ready for debate in parliament

Turkey’s parliament is set to discuss a new law on cryptocurrencies, President Recep Tayyip Erdogan announced on Friday.

The move comes months after Turkey clamped down on the digital assets, banning crypto payments in mid-April.

In May, Turkey added cryptocurrency trading platforms to its list of firms falling under anti-money laundering and terrorism financing regulation, as per a presidential decree.

The anti-crypto regulations were slammed by investors around the world, who view the assets as the future of finance.

While cryptocurrencies like Bitcoin are hailed for their decentralised nature, Ankara has raised concerns over regulatory uncertainly, extremely high volatility and crime.

To mitigate risk, Turkey is looking to establish a central custodian bank, according to a report from Bloomberg earlier this year.

The popularity of cryptocurrencies has boomed in 2021, with a sustained bull run having hugely rewarded long-term investors and attracted new buyers to markets.

Bitcoin, the world’s first digital currency and largest by market cap, reached an all-time high of $68,990 earlier this year. The coin’s price currently stands at close to $51,000 dollars, with bullish analysts saying that a price of $100,000 could be seen in the near future.

While the volatility of cryptocurrencies has attracted some, critics say that the risk of the assets crashing to zero remains a real risk.