The future landscape for crypto development in Turkey remains uncertain until the introduction of a legislative framework to guide the industry’s growth. Despite this uncertainty, a couple of Turkey’s prominent banks are actively embracing the digital asset realm.
Acquisition of Stablex
On Monday, CoinDesk Turkiye reported that Akbank’s investment arm had acquired the local crypto company Stablex. Founded in May 2020 by Jihad Shannak, Stablex aimed to offer professional cryptocurrency services in Turkey. Ak Investment secured a majority shareholding in May of this year, following negotiations that began in August 2022.
A senior official at Ak Investment expressed the group’s ambition to play a pivotal role in the digital asset realm, showcasing a proactive stance in response to the changing financial landscape. Notably, Akbank serves as the primary banking partner for the majority of crypto start-ups in Turkey.
Discussing the acquisition, Akbank executive Mert Erdoğmuş stated, “We have invested in Stablex to meet the demand for reliable and innovative services in the cryptocurrency market. Stablex aligns with our values, showcasing sector experience, pioneering achievements, and a professional service approach.”
BBVA Cryptocurrency Wallet
In tandem with Akbank’s foray into the digital assets realm, Garanti BBVA, Turkey’s second-largest private bank, has introduced its crypto wallet app. This comprehensive application features a cold wallet, enabling users to effortlessly send and receive assets like bitcoin (BTC), USD Coin (USDC), and ether (ETH).The app’s pilot project began in August and is currently accessible on iOS. To bring this app to market, the bank established Garanti BBVA Digital Assets, a dedicated subsidiary. Addressing this development in August, the subsidiary’s Chairman of the Board, M. Çağrı Süzer, noted, “Our research indicates that customers place significant value on trust in their crypto transactions and especially on its storage. Hence, we are pleased to launch our Crypto Custody Wallet addressing these real needs.”Despite uncertainties, Turkey has firmly positioned itself in the global crypto landscape, ranking among the top 20 countries in Chainalysis’ Global Crypto Adoption Index 2023. The instability of the Turkish lira in recent years has driven crypto adoption in the country. In recent days, the bitcoin unit price has reached its highest exchange rate against the local sovereign currency.Earlier this week, reports surfaced that the crypto platform Blockchain.com is expanding its team and eyeing growth opportunities in Turkey.
Regulatory Approach in Compliance with FATF Standards
Turkey has adopted a cautious regulatory stance, exemplified by the central bank’s limitations on crypto payments in 2021. Although a complete ban on digital assets was dismissed, officials disclosed plans for presenting crypto legislation to Parliament in November, aligning with Turkey’s broader goal of exiting the Financial Action Task Force’s “gray list.”
