Banking giants in Turkey embrace crypto ahead of legislative change
It remains unclear what the underlying environment for the further development of the crypto sector in Turkey will be until such time as the country introduces a legislative framework to shape the industry’s development. However, that fact is not deterring a couple of Turkey’s leading banks, who have decided to embrace the digital asset realm.
Stablex acquisition
On Monday CoinDesk Turkiye reported that the investment arm of Turkish bank Akbank had acquired local crypto company Stablex. Stablex was founded in May 2020 by Jihad Shannak with the objective of providing professional services, including trading relative to cryptocurrencies in Turkey. Majority shareholding passed to Ak Investment in May of this year, with initial negotiations on the sale having commenced in August 2022.
A high-ranking official at Ak Investment expressed the group’s ambition to become a pivotal figure in the digital asset realm, signaling a proactive approach to the evolving financial landscape. Akbank also banks the majority of crypto start-ups based in Turkey.
Speaking about the acquisition recently, Akbank executive Mert Erdoğmuş stated:
“We have invested in Stablex to respond to the need for reliable and innovative service in the cryptocurrency market. Stablex reflects our values with its experience in the sector, pioneering achievements and professional service approach.”
BBVA crypto wallet
Alongside Akbank’s move into the digital assets arena, Garanti BBVA, Turkey’s second largest private bank, recently unveiled its crypto wallet app. The feature-rich application includes a cold wallet, empowering users to seamlessly send and receive assets such as bitcoin (BTC), USD Coin (USDC) and ether (ETH).
The pilot project for the app commenced in August, with the application currently available on iOS. In bringing the app to market, the bank created Garanti BBVA Digital Assets, a dedicated subsidiary firm. Commenting on that development back in August, the subsidiary’s Chairman of the Board, M. Çağrı Süzer, stated:
”Our research shows that customers significantly value trust in their crypto transactions and especially on its storage. Hence, we are happy to launch our Crypto Custody Wallet addressing these real needs.”
Despite uncertainties, Turkey has firmly established 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 been a driver for crypto adoption in the country. In recent days, the bitcoin unit price has reached its highest exchange rate level against the local sovereign currency.
Earlier this week, it emerged that crypto platform Blockchain.com is adding headcount and has its sights set on expansion into Turkey as one of its growth opportunities.
FATF-compliant regulatory approach
Turkey’s regulatory stance has been to take a cautious approach. In 2021, the central bank restricted the use of crypto for payments, although a complete ban on digital assets was ruled out by officials.
Looking ahead, a government official revealed plans for crypto legislation to be presented to Parliament in November. While details remain scarce, this legislative move aligns with Turkey’s broader strategy to exit the Financial Action Task Force’s (FATF) “gray list.”
