Turkey and Iran to issue crypto-currencies supported by the state

The governments of Turkey and Iran are considering the possibility of developing their own digital currencies, supported by the government, after Venezuela launched the sale of the national oil coin Petro.

21 February, the day after the launch of Petro, the Ministry of Information and Communication Technologies of Iran (ICT) in the Twitter account, reported that the Iranian bank is working on issuing crypto currency:

"At the meeting with the Board of Directors of Post Bank on digital currencies based on Blockchain, I […] prescribed […] measures to introduce the country's first digital currency."

Turkey is not behind the trend

22 February, two days after the launch of Petro, Al-Monitor's Middle East news line reported that the deputy chairman of the Turkish Nationalist Movement Party (MHP) and former minister of industry Ahmet Kenan Tanrikulu publicly considered the possibility of launching a "national Bitcoin" called "Turkcoin" described in his 22-page report on the regulation of the crypto-currency market

The report Tanrikulu appeared two weeks after the interview of 7 February CNN Turk with Deputy Prime Minister of Turkey Mehmet Sima, where he mentioned that the government is preparing to issue a national crypto currency.

In November last year, the authority of Iranian cyberspace, the High Council of Cyberspace (HCC), "welcomed Bitcoin" and announced that they are working with the Central Bank of Iran on the report on crypto-currencies. 21 February, the Central Bank of Iran said that it is actively working to control the crypto currency in Iran.

Earlier, the Turkish government took a tough stance against Bitcoin and the crypto currency when legislators from the Department of Religious Affairs (Diyanet) said in November 2017 that the trade in crypto currency is incompatible with Islam because of its speculative nature and lack of state control.

Nevertheless, Tanrikulu told Al-Monitor that, since there are no references to crypto-currencies in the Turkish legislation, buying and selling crypto-currencies in Turkey is legitimate:

"The use of crypto currency can be considered legitimate, because in our law there is no prohibition […] to buy and sell using crypto currency, and making money through Bitcoin mining is not part of the criminal activity in Turkey today."

The Tanriculu report adds that Turkey definitely needs crypto regulation to prevent money laundering and fraud, and that the creation of a government-controlled "Bitcoin Exchange" is one way to do this.

Some of the critics believe that the Venezuelan Petro was the only way for the country to escape the Western sanctions imposed on the country. At present, Iran also faces international sanctions.

Author: Yevgeny Yakubenko, AnalystFreedman Club Crypto News

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