Why Turkey is ‘at war’ with Cryptocurrencies ─Presidency

*Turkish President Recep Tayyip Erdoğan restates his administration’s stance on cryptocurrencies, that it is not their intention to open up to crypto in the country

*South Korean province seizes cryptocurrencies worth over $5million from 1,661 investors over tax evasion

Isola Moses | ConsumerConnect

Stressing the pride of the country’s national currency, Turkish President Recep Tayyip Erdoğan has restated his administration’s stance on cryptocurrencies, saying, that the country is at war with crypto.

ConsumerConnect gathered President Erdoğan noted that Turkey will continue with its own currency.

He disclosed this development when answering some questions from young people in the “Meeting with Youth” programme held with University students from 81 provinces in the country.

The event took place in Mersin, a port city in southern Turkey, and important hub of the country’s economy, Bitcoin.Com report stated.

Cryptocurrencies in Korea   Photo: Bitcoin.Com

It was learnt a young man in the audience asked Erdoğan this question: “My question is about cryptocurrency.

Recently, the central bank established a digital Turkish lira platform. With this decision, is Turkey planning to open up to cryptocurrencies? … We are curious about your ideas on this matter.”

The President while clarifying that it is not their intention to open up to cryptocurrencies in the country, said on the contrary, “we have a separate war, a separate struggle against them.”

He stated that cryptocurrency will not receive “premium” treatment since right now Turkey “will continue with our own currency.”

President Erdoğan, in tuen, asked Binali Yıldırım, Deputy Chairman of the Justice and Development Party (AK Party) and former Prime Minister, who also participated in the youth programme, about his opinion on cryptocurrency.

He asked: “What do you say, Mr. Binali?”

Yıldırım also opined: “Unfortunately, cryptocurrency also opens the door to grievances. So, it’s something that needs serious control.

According to the Deputy Chairman of the Justice and Development Party, there are “bad examples” involving cryptocurrencies.

For example, in August, Turkish Police launched an investigation into a dogecoin investment scam that stole from 1,500 investors, and earlier this year, two Turkish crypto exchanges were investigated for fraud.

“In the future, at your discretion,” Yıldırım said to Erdoğan. “It may be necessary to make some arrangements as a state, as a government, in order to prevent these abuses and mistakes. Studies on it have already started.”

ConsumerConnect had reported the Turkish Central Bank, April 2021, issued a notice prohibiting the use of cryptocurrencies for payments of goods and services.

Likewise, in July, the Turkish Government said it was preparing a bill to regulate cryptocurrencies.

Korean Province seizes Cryptocurrencies from 1,661 investors

In a related development, a South Korean province has confiscated cryptocurrencies worth over $5million from 1,661 investors who were more than $12 million in arrears on their fines in total, agency report stated.

The seizure was said to have followed an investigation of nearly 30,000 companies and individuals as well as their cryptocurrency holdings at four exchanges.

Recently, the South Korean province of Gyeonggi, the most populous province in the country, announced last week that it had seized 6.1 billion won ($5.14 million) in cryptocurrencies from 1,661 people who were 14.4 billion won in arrears on their fines in total.

The authorities explained that from May to August 2020, they conducted an investigation of 29,656 companies and individuals who were delinquent on their payments of 1 million won or more under the category of “nontaxable income.”

This includes examining their cryptocurrency holdings at four exchanges.

It was learnt nontaxable income in South Korea refers to income imposed and collected in accordance with the Administrative Procedures Act, such as government fees and administrative fines.

Kim Min-kyung, Head of Gyeonggi’s Taxation Department, quoted by local media, said: “It is the largest amount of cryptocurrency seizure in the country for nontaxable income delinquents.

As this seizure may be the largest under the nontaxable income category, the province has seized more cryptocurrencies before, report said.

In June, the government of Gyeonggi Province reportedly seized cryptocurrencies worth more than 53 billion won from about 12,000 people who were delinquent on their tax payments.

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