Blockchain is only a database with out crypto, authorized knowledgeable says

Blockchain can’t be separated from crypto in a progressive method as a result of extracting blockchain from crypto diminishes the previous to a glorified database, leaving all of the thrilling alternatives out, Turkish legislation knowledgeable Elçin Karatay instructed Cointelegraph.

As a rustic that noticed Bitcoin (BTC) hit an all-time excessive on a really totally different date than the remainder of the world, Turkey’s efforts on establishing a regulatory framework whereas the inhabitants flocks to cryptocurrencies as a option to hedge in opposition to double-digit inflation may also help understanding handle crypto regulation in unstable economies.

Following Turkish President Recep Tayyip Erdoğan’s affirmation {that a} crypto legislation is within the works, the Turkish Parliament hosted a delegation of native crypto consultants in a bid to higher perceive the expectations of the ecosystem. Cointelegraph reached out to Elçin Karatay, who was among the many group, to get a lawyer’s perspective on the assembly held in Ankara. Karatay is a founding member of the Fintech Affiliation Turkey and works as a managing accomplice at Solak and Companions legislation agency.

Defying the favored ”blockchain-is-good-crypto-is-bad” narrative, she argued that blockchain by itself doesn’t require a complete authorized evaluation as it could be diminished to a vital database expertise if crypto is faraway from it:

“All of the alternatives created by this business, identical to all of the dangers, manifest themselves within the fields the place crypto and blockchain go hand in hand.”

When the governments don this narrative, it ends in both complete crypto bans or a legalized, “lite” model of crypto that doesn’t have any of the soul of decentralization left in it, she added. Stability is of utmost significance on the subject of establishing a regulatory framework round crypto, Karatay mentioned:

“Should you solely give attention to eliminating dangers related to a particular business in regulatory efforts, you’d additionally remove any potential advantages and alternatives that will in any other case be provided by the identical business.”

The Turkish blockchain ecosystem, as with all different worldwide enterprise hubs, wants regulation that encourages innovation whereas defending people’ rights, Karatay mentioned. Through the assembly, every participant shared the mandatory steps from their very own perspective. Lawmakers prevented sharing any commentary because the goal of the session was to listen to the opinion of the crypto ecosystem.

Associated: Crypto and NFTs meet regulation as Turkey takes on the digital future

Karatay offered actual examples of creating balanced regulation for cryptocurrencies throughout the assembly. She defined to lawmakers how the European Union’s draft laws handles crypto-related funds and distinguish between security-, utility- and asset-based tokens.

She additionally used this chance to clarify why limiting and “excessive” regulation wouldn’t be environment friendly. Seeing the lawmakers’ invitation to crypto consultants as a constructive step towards a balanced regulatory method, Karatay confused that the general environment of the assembly, which may be the primary of a sequence, was optimistic.

For a fast recap, there’s no official regulatory framework in Turkey regardless of President Recep Tayyip Erdoğan’s harsh criticism of crypto. Since they’re handled as property and never financial devices, cryptocurrencies have been banned as a fee technique since April 2021.