Turkey Plans to Enter the Crypto-Ecosystem With its Own Cryptocurrency
The 11th Development Plan covering 2019-2023 was recently released in Turkey. One detail in the plan which has seemingly been overlooked is its commitment to creating ‘digital money’ via blockchain technology. The new goal is in line with the country’s plans to shape Istanbul into a global mega-center for finance.
The implementation of the ‘blockchain-based digital money‘ will be issued to further bolster investments into the country and will be controlled by the central bank. As the Turkish Lira continues to amass difficulties, with fears of further inflation, the government is taking steps to further protect its assets and investment pool.
The Turkish government seems to believe that by focusing on so-called ‘digital money,’ it will allow for greater cooperation between its central bank and others. Trade opportunities are expected to increase as a result. However, few central banks have expressed openness at the prospect of issuing their own cryptocurrencies. Furthermore, there is a great inconsistency across the world’s financial infrastructure which could make the transferring of Turkey’s planned cryptocurrency difficult.
For now, we know no details on the release date of this project. Anyway, given that the 11th Development Plan expires in 2023, we can possibly expect a pilot program and some concrete steps in a few year’s time. Still, if successful, the Turkish project could inspire other central banks to do the same. (Neutral)
Poloniex Crypto Exchange Users Can Now Use Credit Cards and Bank Accounts
On July 9, major cryptocurrency exchange Poloniex announced that it now allows its customers to use credit cards and bank accounts on the platform in a Medium post.
Per the release, exchange users from 80 countries can now directly move funds to and from their bank accounts, which will be automatically converted into stablecoin USD Coin (USDC) on Poloniex.
Initially, the weekly limits are $50,000 for deposits and $25,000 for withdrawals, but the exchange admits that those limits can be increased to fit the needs of specific customers.
Customers in more than 60 jurisdictions will be able to purchase cryptocurrencies using their debit or credit cards. Poloniex enabled card payments through a partnership with payment processor Simplex, which will charge a 3.5% fee (or $10, whichever is greater) and allow to buy a minimum of $50 of Bitcoin (BTC).
Crypto payments firm Circle purchased Poloniex in February 2018 for $400 million. At press time, Poloniex is the 58th largest cryptocurrency exchange by adjusted 24-hour trade volume according to data from CoinMarketCap. (Positive)
Canadian Crypto Exchanges Must Register With Financial Watchdog Next June
This requirement will come into effect along with other amendments to Canada’s new anti-money-laundering (AML) laws next year.
Crypto exchanges will also reportedly be required to observe Know Your Customer policies and report any suspicious transactions to the Canadian watchdog; this also includes keeping records of their clients and hiring a compliance officer for their platform.
A report by The Globe and Mail notes that up until now, compliance with these policies has been voluntary, but some exchanges have chosen to do so anyway.
The motivation for implementing the new policies is reportedly to get Canadian banks onboard and in cooperation with cryptocurrency exchanges.
According to Lori Stein, a partner at business law firm Osler, Hoskin & Harcourt, Canadian financial institutions have historically been concerned about the risk of money laundering and terrorist financing via crypto exchanges. Stein said:
“The hope is that now that there is going to be a requirement to register and comply, and oversight by FinTRAC, that banks and other financial entities are going to be more open to providing services to and dealing with virtual-currency businesses.”
However, Stein points out that some international exchanges may not be willing to comply with the new Canadian rules. Some other experts reportedly agree, saying that having mandatory regulation requirements could result in cryptocurrency exchanges opting to exit from the Canadian marketplace. (Neutral)