NEWSROOM

Global crypto trends indicate that 2024 will be a year of regulation in digital assets, and development in 2023 on both the government and traditional financial institutions fronts has reinforced these expectations. 

TURKEY - The regulatory steps in the cryptocurrency markets are expected to become more visible in 2024, following developments in the second half of 2023, including moves by Gary Gentler, Chairman of the U.S. Securities and Exchange Commission (SEC), and a proposed bill by the U.S. Senator Elizabeth Warren to regulate cryptocurrencies similarly to traditional finance. Kafkas Sönmez, CEO of Gate TR, discussed the developments in 2023 that indicate a move toward regulation. 

Spain and Hong Kong took significant steps

In 2023, even China, which had adopted strict rules regarding cryptocurrencies in previous years, signaled a softening through Hong Kong. The Hong Kong government took a significant step in August 2023 by allowing individual investors to engage in digital asset trading, thus supporting the crypto economy. Hong Kong financial authorities also emphasized their readiness to review applications for digital asset-indexed spot exchange-traded funds (EFTs). On the other hand, data from the Central Bank of Spain showed a 56& growth in the number of registered crypto companies in Spain in 2023. Throughout the year, 30 companies in the country obtained licenses as digital asset service providers. 

Kafkas Sönmez noted that as of 2023, the timetable for compliance with the MiCA regulatory law for European Union countries has also become clearer. He stated, "The transition period has also begun with the law coming into effect in mid-2023. According to the plans published by European financial authorities, the implementation phase will last until December 2024. Additionally, Europe aims to complete all global crypto and blockchain-focused regulations by 2026.”

Interest from institutional players in the cryptocurrency space has grown, with traditional finance entering the game

Kafkas Sönmez noted that the interest shown by traditional financial institutions and asset management companies indicates that cryptocurrency's acceptance as an established financial instrument is imminent. He stated, "The involvement of major players has supported regulatory expectations in many countries worldwide, especially in the United States. Interest in the opportunities brought by blockchain technology is not limited to tools like Bitcoin ETFs alone. The awareness of technologies such as tokenization, which involves breaking real-world assets into investable pieces and moving them onto the blockchain, has also increased. A study published by BNY Mellon in late 2022 revealed that 91% of institutional investors are interested in investing in tokenized assets. In the past two years, traditional finance has become aware of new asset types and investment tools brought by blockchain technology."

“The Digital Turkish Lira’s first-phase report is promising"

Especially as of the fourth quarter of 2023, it is worth noting that expectations regarding crypto regulation in Turkey have increased. Gate TR CEO Kafkas Sönmez concluded his evaluations with the following statements: 

“Global crypto regulation primarily focuses on central bank digital currency and the regulation of cryptocurrency service providers. The Central Bank of the Republic of Turkey reaffirmed its role in shaping the global trends in digitizing money with the First Phase Evaluation Report on the Digital Turkish Lira, published on the last day of 2023. The efforts related to the Digital Lira are promising in this context. The statements from the new economic administration, indicating an acceleration in crypto regulation efforts to remove Turkey from the Financial Action Task Force (FATF) gray list, suggest that we may see developments in this regard in the first quarter of 2024. As Gate TR, which has supported crypto adoption in Turkey through listing TL trading pairs and has consistently emphasized its support for regulation since its entry into the Turkish market, we believe that our lawmakers will work on initiatives that satisfy investors and all other stakeholders, install confidence in the ecosystem, and transform Turkey into a crypto hub.”