Cryptocurrencies are forms of money that lack a physical presence and operate without reliance on any authority or central entity. The lower cost, speed, and reliability of transactions have increased user demand for cryptocurrencies. Globally, the total cryptocurrency market volume is $2.43 trillion, and considering active wallet numbers and exchange accounts, it is estimated that there are approximately 500 million users.
How has the historical development of cryptocurrencies evolved?
The first cryptocurrency, Bitcoin, was introduced in 2008 by an individual or group using the pseudonym Satoshi Nakamoto, who published a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” detailing the principles and operation of Bitcoin. The first transaction occurred in 2009 when this same individual or group created the first block. The first concrete demonstration of its value began on May 22, 2010, with the purchase of two pizzas.
Why is there such a high demand for cryptocurrencies on a global scale?
The high demand for cryptocurrencies stems from their decentralized nature, which allows transactions to be made directly from person to person without the need for a third-party intermediary, all within a robust security chain. Transactions occur within the blockchain network, and the likelihood of personal information being compromised is extremely low—around 0.0001% (one in a million) or even lower.
What is the relationship between cryptocurrencies and government authorities?
Some countries permit the use of cryptocurrencies under specific regulations. In Turkey, however, there is no regulation defining or recognizing the legal status of cryptocurrencies, with the exception of the Regulation on the Non-Use of Crypto Assets in Payments and the Law on Amendments to the Capital Markets Law.
What is the relationship between cryptocurrencies and Turkish authorities and law?
The most recent regulation, the Law on Amendments to the Capital Markets Law, aims to regulate the trading activities of crypto assets on platforms and has introduced a requirement for crypto asset providers to obtain permission from the Capital Markets Board (CMB).
Article 3 of the Regulation on the Non-Use of Crypto Assets in Payments provides the first legal definition of crypto assets in Turkey. According to the regulation, “Crypto assets” are defined as “intangible assets created virtually and distributed over digital networks using distributed ledger technology or similar technology, but which are not considered fiat money, registered money, electronic money, payment instruments, securities, or other capital market instruments.”
Moreover, in a press release dated November 25, 2013, the Banking Regulation and Supervision Agency (BRSA) stated that Bitcoin, one of the world’s most famous and popular cryptocurrencies, does not fall under the concept of electronic money. Therefore, the provisions of Law No. 6493 on “Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions” cannot be applied to Bitcoin.
What is the definition and nature of cryptocurrency?
Examining concepts that could match the definition of cryptocurrency will help clarify any remaining uncertainties.
Money is generally accepted as assets used by individuals and businesses in commercial life for transactions or debt repayment.
Goods are defined as tangible items. Intangible assets cannot be categorized as goods. In legal terms, the acceptance of something as a good is influenced not only by its physical nature but also by its economic function, moral views, and business practices. The elements of the concept of goods include tangibility, defined boundaries, controllability, and externality.
Considering all these definitions and legal regulations, cryptocurrencies, defined as intangible assets and referred to in comparative law as “digital assets” or “intangible assets,” can be classified as intangible assets or digital assets according to Article 3/I of the Regulation on the Non-Use of Crypto Assets in Payments.
As cryptocurrencies move beyond the traditional concept of money and reach an increasing number of users and transactions daily, their integration with state authorities needs to be regulated due to reasons such as their non-fiat nature and existing legal infrastructure gaps.