The Turkish government penalised Binance, the Japan-based crypto exchange giant with operations in the United States and a number of other nations across the world, 8 million lira (about $750,000 USD) for allegedly breaking the Eurasian country’s legislation.
Binance issued a statement in response to the sanction, revealing that it is currently collaborating with the Turkish government to help the construction of a sustainable, healthy, and secure ecosystem.
According to Turkish daily NTV, President Recep Tayyip Erdoan’s cabinet has already passed legislation to control Bitcoin and other digital assets. “We will send it to parliament as soon as possible,” Erdogan said on December 24th.
The government has not provided any information about the legislation’s text, but all indications are that it will strive to regulate the flow of cryptocurrency as well as transactions in the country.
The administration is attempting to revalue the lira, which has fallen to unprecedented levels in recent weeks as a direct result of Erdogan’s messaging reducing exchange rates and the financial crisis.
The lira is currently trading at 0.087 against the US dollar. The Turkish currency rose by more than 20% last week after President Erdogan guaranteed that depositors could recoup their losses if they kept their investments in the national currency.
“Citizens will see that the central bank, the guarantor of the Treasury, is the guarantee of their money,” Erdogan remarked on December 24th in a statement to the specialised economic press.
He also stated that Turkey would be shifting to a new economic paradigm. “We are aware of the hazards and opportunities that lie ahead of us. These are risks that are well worth taking.”