Tag Archives: Turkish

Istanbul blast that killed 6 and injured 81 is considered a terrorist attack, Turkish vice president says


Istanbul
CNN
 — 

An explosion that killed at least six people and injured at least 81 others in Istantbul on Sunday has been deemed a terrorist attack, Turkish Vice President Fuat Oktay said, according to state news agency Anadolu.

“We consider it to be a terrorist act as a result of an attacker, whom we consider to be a woman, detonating the bomb,” Oktay told reporters Sunday.

The blast happened on Istiklal Street in Beyoglu Square, in the heart of Turkey’s largest city, Istanbul Governor Ali Yerlikaya said.

“We wish God’s mercy on those who lost their lives and a speedy recovery to the injured,” Yerlikaya tweeted.

Earlier Sunday, Turkish President Recep Tayyip Erdogan said the explosion might be terror-related, but he was not yet certain.

“It may be wrong if we say this is definitely terror, but according to preliminary findings, what my governors told us, that there is a smell of terror here,” Erdogan said at a news conference.

He said authorities were reviewing CCTV footage.

“All the responsible figures will be identified and punished,” the president said.

Erdogan said he and his delegation would continue plans to attend the G20 summit in Bali, Indonesia.

Istanbul’s Chief Public Prosecutor’s Office has launched an investigation, with five public prosecutors assigned, the country’s official Anadolu news agency reported.

The city’s criminal court issued a broadcast ban on all visual and audio news, as well on social media sites, related to the explosion, Anadolu added.

Local media reports and images from the area showed a large number of emergency vehicles in the aftermath of the blast. Some people could be seen fleeing the scene, and the area was being cordoned off by security services.

One witness, journalist Tariq Keblaoui, told CNN he was in a store on Istiklal Street when the explosion occurred about 10 meters ahead of him.

He said several people could be seen lying on the ground following the blast.

The extent of the injuries of those he saw was not clear, but several people were bleeding from their legs and arms, Keblaoui said.

He said Istiklal Street, a popular tourist area, was heavily crowded on Sunday. Istiklal Street is one of the main streets leading to Taksim Square.

Istanbul Mayor Ekrem Imamoglu called for assistance for police and health worker teams as they respond to the explosion.

“It is essential to assist our police and health teams regarding the explosion on Istiklal Street, and to avoid posts that may cause fear and panic. All relevant teams are in the region, we will provide healthy information,” he tweeted.

News of the explosion was met with dismay internationally.

“Horrific news from Istanbul tonight. Condolences to the victims of the explosion at Istiqlal,” European Council President Charles Michel said. “All our thoughts are with those currently responding and the people of Türkiye at this very distressing time.”

NATO Secretary General Jens Stoltenberg tweeted his “deepest condolences” to the Turkish people, adding that NATO “stands in solidarity with our ally” Turkey.

Austrian President Alexander Van der Bellen expressed his “sincere condolences to the people of Turkey and the citizens of Istanbul,” adding: “In view of the horrific explosion this afternoon in the heart of Beyoğlu my thoughts are with the families of the victims. Wishing a speedy recovery to all injured.”

Italian Foreign Minister Antonio Tajani said: “Italy expresses its closeness to the Turkish government and people and its heartfelt condolences for the innocent victims. Our crisis unit is monitoring the situation and contacting our compatriots.”

Ukrainian President Volodymyr Zelensky tweeted of his “deep sadness” at the news of the blast. “I offer my condolences to the families of those who lost their lives and wish a speedy recovery to the injured,” Zelensky said. “The pain of the friendly Turkish people is our pain.”



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Live news updates: Turkish inflation tops 80% in August

The long hot summer is drawing to a close. And while resolutions to the current economic and political strife appear a long way from resolution — the UK’s summer of discontent, for instance, is turning into an autumn of industrial unrest — we will enter a new season of leadership in the next seven days.

The UK’s Conservative party leadership election will (at last) be completed on Monday. Unless polling to data has been wildly inaccurate, Liz Truss will claim the prize and name a new cabinet. The FT will be providing full analysis of these events.

Sweden’s Magdalena Andersson is hoping to be reappointed as premier as her country goes to the polls on Sunday. Like both the outgoing and incoming British prime minister, Andersson rose to power in chaotic circumstances after her party had already governed the country for several years. Unlike the British PM, Andersson is more popular than her party and her rivals. This election, however, is much closer to call than that of the UK’s Conservative party vote.

US president Joe Biden will be out on the stump with November’s midterm elections very much on his mind. The week will end with reflection for the US as it passes the 21st anniversary of the 9/11 attacks.

Another Conservative party leadership election will also finish this Saturday, in Canada. The contest — kick-started in February with the resignation of Conservative party leader Erin O’Toole — makes the British Tory leadership contest look a bit rushed. But Canada’s Conservatives have the luxury of taking their time because whoever wins will not be immediately running the country.

Economic data

The week will begin with an Opec+ meeting. Saudi Arabia last month warned it could push for a cut in oil production if prices keep falling.

The European Central Bank’s monetary policy committee meets on Thursday. Last week’s drop in eurozone unemployment has fuelled speculation that the central bank will accelerate its tightening cycle to curb eurozone inflation with a 0.75 percentage point rise.

There are also inflation and trade figures from China, industrial production data from Germany, jobs figures from Canada and international service sector comparisons with the latest round of purchasing managers’ index data. The holiday season is officially over.

It is Labor Day on Monday which means the US markets will be closed.

Companies

Apple unveils its new iPhone range.

Among those expected to deliver some fairly positive news is Ashtead, the equipment hire group. Supply chain constraints and economic uncertainty have pushed companies to rent equipment from Ashtead rather than buy it, chief executive Brendan Horgan said in June.

This will be further enhanced by a pipeline of infrastructure projects about to take shape, according to Steve Woolf at investment bank Numis. “The medium-term outlook is supported by infrastructure spending, with a significant volume of large-scale projects due to break ground over the next 12 to 18 months,” he wrote.

Read the full week ahead calendar here.

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Turkish singer Gulsen arrested over religious schools comment | Religion News

Turkish popstar Gulsen issued an apology on social media prior to her arrest, but a gov’t spokesman called her comments a ‘disgrace’.

The Turkish pop star Gulsen was arrested on Thursday after an Istanbul prosecutor opened an investigation into charges of “inciting people to hatred and hostility” after a remark she made on stage about religious schools, local media have reported.

Singer Gulsen Bayraktar Colakoglu – a 46-year-old woman known by her first name – was detained at home in Istanbul and taken to court.

A judge then remanded her in jail pending an investigation into remarks she made at a concert in April about Imam Hatip religious schools.

A clip of the comments went viral and created outrage among senior members of President Recep Tayyip Erdogan’s conservative AK Party this week.

Gulsen is a household name in Turkey and her case has turned into headline news in the highly polarised country.

The controversial comment saw Gulsen remark to an unknown person on stage, in apparent jest, that his “perversion” was caused by his upbringing in an Imam Hatip school.

“Targeting a fraction of society with the allegations of ‘perversion’ and trying to divide Turkey is a crime of hatred and disgrace of humanity,” AK Party spokesman Omer Celik said.

Gulsen issued an apology on social media prior to her arrest.

“A joke I shared with my colleagues with whom I have worked for many years … was featured and published by those who aim to polarise society,” she said.

“I am sorry that my words gave material to malicious people who aim to polarise our country.”

Gulsen’s lawyer Emek Emre promised to appeal the star’s arrest and seek her immediate release.

“Our client has not committed any crime,” he told reporters.

A clip of the comments went viral and created outrage among senior members of President Recep Tayyip Erdogan’s conservative AK Party this week [File: Burhan Ozbilici/AP]

Vote ahead

Erdogan and his ruling AK Party will need a strong turnout from their core of socially conservative voters to reverse a slide in the polls ahead of a general election next June.

The state-run Diyanet, or Religious Affairs Directorate, has seen its budget and public influence grow in recent years, prompting charges that Erdogan is using religion to boost his ratings ahead of tight elections set for next year.

Erdogan’s supporters say the moves are a reversal of anti-religious diktats issued by the AK Party’s fiercely secular predecessors in government.

Critics say Erdogan has bent the courts to his will to crack down on dissent and free expression, charges the government denies.

The Turkish opposition has seized upon Gulsen’s case to boost their support.

CHP party leader Kemal Kilicdaroglu called on Thursday for Turkey’s youth to come out and vote next year to save artists such as Gulsen from being jailed.

“I am calling out to the youth – these unjust rulings will come to an end,” Kilicdaroglu said in a social media post.

“They are trying to rule this country by provoking and dividing you.”

Late-night news of Gulsen’s arrest prompted some Fenerbahce football fans to start singing one of her songs at a Europa League match in Istanbul against Austria Vienna.

Social media posts showed a section of the packed stadium joining in the song in solidarity with the jailed star.

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Turkish Defense Industry Grows Cautious Over Selling Weapons to Ukraine

ANKARA, Turkey—The head of Turkey’s weapons-production agency said the country must be cautious about delivering more arms to Ukraine, months after Turkish-made drones played a critical role in the defense against Russia’s invasion.

“We are much more careful,” said

Ismail Demir,

the president of Turkey’s Defense Industry Agency and a top official in President Recep

Tayyip Erdogan’s

government.

The comments show how Turkey is increasingly playing both sides of the Russia-Ukraine conflict, standing apart from some other members of the North Atlantic Treaty Organization that are sending more weapons to Ukraine in the hope of stalling Moscow’s ongoing assault on the country’s east. While Western countries have moved to isolate Russia, Turkey has maintained an open line to Moscow, welcoming inflows of Russian money and facilitating two rounds of peace talks that ended without an agreement.

“Turkey is the only country I guess that can give a call to both parties and call them to the peace table. How can you do this if you send tens of thousands of weapons to one side?” Mr. Demir said in an interview with The Wall Street Journal.

Turkey’s Bayraktar TB-2 drones were instrumental in Ukraine’s initial resistance to the Russian invasion, blowing up military convoys and sinking warships. The drones’ success against Russian forces was celebrated by Ukrainians and helped improve Turkey’s standing in the West.

Turkey initially sold the TB-2 drones to Ukraine in 2019, and the two countries signed a new agreement for delivery of more of the aircraft, along with plans to jointly produce the drones, in February 2022.

‘We have to be able to talk to both sides, someone should be close enough to both parties, to build trust,’ said Ismail Demir, the president of Turkey’s Defense Industry Agency.



Photo:

Ahmed Deeb for The Wall Street Journal

A U.S. official said Turkey indicated in March that more of the drones would be forthcoming. Asked if Turkey was continuing to supply weapons including TB-2s to Ukraine, Mr. Demir said: “There are things going on, but I’m not in a position to say, but we are much more careful.”

Ukrainian and Turkish officials have declined to comment on any further deliveries of TB-2 drones. Baykar, the Turkish company that makes the drones, said earlier in June that it would donate one of the drones to Lithuania after a group of Lithuanians raised more than $6 million to buy one for Ukraine.

Mr. Demir said Turkey had no hesitation over selling other types of equipment, such as protective gear, to Ukraine.

“We have to be able to talk to both sides, someone should be close enough to both parties, to build trust,” he said.

“Our priority is to make sure that peace prevails,” said Mr. Demir.

In occupied regions of Ukraine, Russia is handing out passports, teaching its version of history, and sending trucks blasting the Kremlin’s propaganda. But convincing people to support the invader can be complicated. WSJ’s Thomas Grove reports. Photo: Sergei Ilnitsky/EPA-EFE/Shutterstock

Mr. Demir’s comments came as Ukrainian officials have expressed concern that Turkey is gradually shifting its position toward Russia, after initially taking concrete steps to support Ukraine’s war effort in the early days of the invasion.

In recent days, Ukraine has accused Turkey of buying stolen wheat from Russia. A senior Ukrainian official said Ukraine is asking itself: “‘Is Turkey switching sides?”

“Turkey’s interests come first for Turkey,” the senior Ukrainian official said.

A Turkish official said the concerns about the country shifting its position on the conflict were “baseless.”

“We stand by Ukraine in political, humanitarian and other fields,” the official said.

The official also said Turkey is processing information Ukraine had provided about the allegedly stolen grain. Russian authorities provided documents saying the cargo had originated in Russia, the official said.

“It is technically very difficult to determine the geographic origin of grain,” the official said.

Mr. Erdogan has tried to maintain good relations with both Ukraine and Russia—two Black Sea neighbors that are major sources of commodities for Turkey. He has made moves that have pleased and displeased both sides.

Though Turkey didn’t impose economic sanctions against Russia, the country shut off access to the Black Sea for Russian warships and closed Turkish airspace to certain Russian military flights from Syria following a request from Ukraine.

Ukrainian officials initially welcomed the Turkish government’s role as a facilitator of peace talks, saying that Turkey was a more neutral site for the negotiations than their original location in Belarus, a Russian ally that aided in the assault on Ukraine.

In recent weeks, Turkey has also sought to broker a deal that would help export grain and other vital food products from Ukraine. As much as 20 million metric tons of grain has been trapped in Ukraine as a result of the Russian invasion, raising fears of a global food crisis.

Turkey broke with the Western consensus on the Ukraine crisis when Mr. Erdogan decided in May to block Sweden and Finland’s application to join NATO over concerns about the presence of Kurdish militants in the two countries. The three countries are continuing negotiations to try to resolve the dispute this week.

Mr. Erdogan has long had an unusual partnership with Russia’s President

Vladimir Putin,

authorizing purchases of Russian weapons while also sending Turkish forces to fight proxy wars against Russia in Syria and Libya.

In recent weeks, Mr. Erdogan has also called for a new military operation against Kurdish militants in Syria, an action that would likely require Russian approval because of the presence of Russian soldiers in the specific areas of Syria that Mr. Erdogan says it plans to attack.

The battlefield dynamic has also shifted in Ukraine, with Russia making gains in the east after failing to achieve its early objectives.

“As it becomes clear that there may not be an immediate victory, they’re starting to become more cautious,” said Asli Aydintasbas, a senior policy fellow with the European Council on Foreign relations.

“Turkey increasingly characterizes this as a contest between the West and Russia and does not want to get caught in that. The logic of neutrality is stronger in the country now than three or four months ago,” she said.

Write to Jared Malsin at jared.malsin@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Finland, Sweden apply to join NATO, face Turkish objections

  • Application submitted at NATO headquarters
  • Move seen redrawing geopolitical map of Europe
  • Non-aligned for decades, Ukraine war caused policy upheaval
  • Countries seeking to resolve Turkish objections to NATO bids

BRUSSELS, May 18 (Reuters) – Finland and Sweden formally applied to join the NATO alliance on Wednesday at allied headquarters, a decision spurred by Russia’s invasion of Ukraine, but face objections from Turkey to an accession process that is expected to take only a few weeks.

Neutral throughout the Cold War, Sweden’s and Finland’s decision to join NATO is one of the most significant changes in Europe’s security architecture for decades, reflecting a sweeping shift in public opinion in the Nordic region since Russia’s Feb. 24 invasion.

“This is a historic moment, which we must seize,” NATO Secretary-General Jens Stoltenberg said at a short ceremony in which the Swedish and Finnish ambassadors to the alliance handed over their application letters, each in a white folder embossed with their national flag.

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“I warmly welcome requests by Finland and Sweden to join NATO. You are our closest partners, and your membership in NATO will increase our shared security,” Stoltenberg said. The alliance considers that the accession of Finland and Sweden would hugely strengthen it in the Baltic Sea.

With the applications formally submitted, the Nordic countries and their many backers now face uncertain months where any resistance to their bids needs to be overcome, with all 30 of NATO’s members needing to approve the enlargement.

Ratification by all allied parliaments could take up to a year, diplomats say.

Turkey has surprised its allies in recent days by saying it had reservations about Finnish and Swedish membership, saying the two countries harbour individuals linked to groups it deems terrorists and hitting out at arms export embargoes imposed on it after its Syria incursion in 2019. read more

Stoltenberg said on Wednesday that he thought the issues could be resolved.

“We are determined to work through all issues and reach rapid conclusions,” Stoltenberg said, noting strong support from all other allies.

Seeking to move the membership process along, Sweden’s defence minister has already headed to Washington and will be followed by Swedish Prime Minister Magdalena Andersson and Finnish President Sauli Niinisto later this week. read more

The countries hope speedy ratification by the United States, the alliance’s premier power, will help smooth their path to membership with the White House having said it is confident any obstacles can be overcome. read more

The decision to seek a place under the NATO umbrella represents a setback for Moscow, with the war in Ukraine triggering the very kind of enlargement of the alliance on Russia’s borders that it took to arms to prevent.

So far, Moscow’s response has been unexpectedly muted, having previously warned of steps of a “military-technical” nature and that it could deploy nuclear weapons in its European exclave of Kaliningrad were the countries to join.

President Vladimir Putin said on Monday that Swedish and Finnish NATO membership posed no threat to Russia, but cautioned that Moscow would respond if the Western alliance boosted military infrastructure in the new Nordic members. read more

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Reporting by Robin Emmott, Marine Strauss; writing by Robin Emmott and Niklas Pollard; editing by David Evans

Our Standards: The Thomson Reuters Trust Principles.

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Turkish businessman and philanthropist Osman Kavala sentenced to life over Gezi Park protests

Kavala was sentenced in connection with the 2013 anti-government protests in Turkey, which began over a plan to turn a small park in central Istanbul into a shopping mall in the summer.

The demonstrations quickly morphed into larger anti-government rallies across Turkey. The court also sentenced seven other defendants to 18-year prison sentences for aiding an attempt to overthrow the government. Among them was 71-year-old architect Mucella Yapici, Istanbul Municipality urban planner Tayfun Kahraman and documentary filmmaker Cigdem Mater.

Istanbul’s 13th Heavy Penal Court ordered that the activists, who were not arrested pretrial, to be immediately arrested, Anadolu reported.

Kavala, his lawyers, other defendants and their lawyers have repeatedly denied the accusations, saying prosecutors lack evidence to support the claims. They are also expected to appeal the verdict.

Kavala, 64, is among Turkey’s most high-profile detainees.

He was first arrested in 2017 on charges related to the 2013 Gezi Park protests in Istanbul. The trial was closely watched by rights groups, who have accused the Turkish government of using the judicial system to crack down on dissenting voices.

Though Kavala was acquitted in 2020, that verdict was overturned and new charges were brought against him for his alleged involvement in the July 2016 attempted coup, which resulted in the death of at least 250 people and a subsequent crackdown that has seen over 110,000 people, including civil servants, teachers, activists and journalists detained.

Amnesty International called Monday’s ruling a “devastating blow” for human rights, saying that the court’s decision “defies all logic.”

“Today, we have witnessed a travesty of justice of spectacular proportions. This verdict deals a devastating blow not only to Osman Kavala, his co-defendants and their families, but to everyone who believes in justice and human rights activism in Turkey and beyond,” Amnesty said in a statement.

Kavala’s arrest has strained Turkish government relations with the West. Ten ambassadors, including representatives from the United States, France and Germany, released a statement asking for his freedom and Turkish president Recep Tayyip Erdogan declared them “persona non grata.”

Germany’s foreign minister Annalena Baerbock called the judgment a “blatant contradiction” of the international obligations Turkey is committed to as a member of the Council of Europe, according to a statement posted by Germany’s Federal Embassy on Monday. She also called for the immediate release of Kavala.

In February, Europe’s top human rights body, the Council of Europe, launched infringement procedures against Turkey for refusing to abide by a ruling by the European Court of Human Rights, which called for Kavala’s release on grounds that his rights had been violated.

In a statement on Monday, two leading European Parliament ministers following the decision said, “This regrettable decision by the Istanbul 13th Heavy Penal Court is in clear contempt to the rulings of the European Court on Human Rights and will surely bring about consequences in the infringement proceedings ongoing at the Council of Europe.”

European Parliament Standing Rapporteur for Turkey Nacho Sánchez Amor and Sergey Lagodinsky, chair of the EU-Turkey Parliamentary Delegation, expressed solidarity with Kavala, the other defendants and their families in their statement.

“(This is a) very sad day not only for them but also for those who daily defend fundamental rights and the rule of law in Turkey and for all those who wish to see the country coming closer to the EU. This is obviously not the way to do it,” they said.

“There is little to none EU perspective for the current Turkey, which is sliding away from international consensus on a rule-based order while disrespecting its own international commitments,” they added.

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Turkish court approves transfer of Khashoggi murder suspects to Saudi Arabia

Khashoggi’s killing at the Saudi consulate in Istanbul in 2018 triggered a global outcry against the kingdom and its de facto ruler, Crown Prince Mohammed bin Salman. Turkish officials said Khashoggi, a prominent critic of bin Salman, was killed and dismembered inside the consulate in an operation had been approved by the “highest levels” in Riyadh. US intelligence assessed that the Crown Prince himself approved the operation, though he has denied the allegation.

The ruling Thursday comes a week after a Turkish prosecutor requested the nearly two-year-old trial be halted and transferred to Saudi Arabia because arrest warrants for the suspects could not be executed and their statements could not be taken.

Turkish President President Recep Tayyip Erdogan is currently seeking to mend ties with Riyadh.

Hatice Cengiz, the late Khashoggi’s fiancé, and her legal team told CNN they would appeal the decision. They argued that the case would likely fizzle out in Saudi Arabia’s opaque justice system.

It’s unclear what comes next for the 26 suspects. Saudi Arabia in 2020 sentenced eight people to between seven and 20 years in prison for Khashoggi’s murder, but Ankara said at the time that verdict fell short of expectations. The Turkish court overseeing the case asked in November for details from Saudi authorities — who had not named the suspects who were sentenced in Riyadh — so the defendants would not be punished twice for the same crime.

The Turkish prosecutor said Saudi authorities responded by asking for the case to be transferred to them. Riyadh has pledged to evaluate the accusations against the 26 defendants if the case was moved, the prosecutor said.

The killing and subsequent accusations strained ties between Turkey and Saudi Arabia, including a boycott of Turkish goods, which has slashed Ankara’s exports to the kingdom by 90%.

Erdogan is now seeking better ties with states that had become bitter rivals in recent years, including Egypt, Israel, the United Arab Emirates and Saudi Arabia.

Israeli and UAE leaders have visited Ankara in recent months, but progress with Cairo and Riyadh has been slower. Erdogan said last month he hoped to take “concrete steps” with Saudi Arabia soon.

Reuters contributed reporting.

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Tata Group appoints former Turkish Airlines chairman Ilker Ayci as new Air India MD and CEO

The Tata Group has appointed Ilker Ayci — former Turkish Airlines Chairman — as Air India’s Managing Director and CEO effective on or before April 1. The development is in line with the Tata Group’s plans to appoint an expatriate chief to run the airline it took over from the Indian government last month.

Ilker Ayci was chairman of Turkish Airlines since 2015, and his resignation from the post was announced by the airline on January 27 this year — the same day Tatas were handed over Air India by the Centre.

During his professional career, Ayci has been an advisor to the then Mayor of Istanbul Recep Tayyip Erdoğan in the Metropolitan Municipality of Istanbul, where he took part in a number of development projects in Turkey’s largest city. Erdoğan is currently the President of Turkey.

“The Air India board met this afternoon to consider the candidature of Mr. Ilker Ayci. Mr. N Chandrasekaran, Chairman of Tata Sons, was a special invitee to this board meeting. The board after due deliberations approved the appointment of Mr. Ilker Ayci as the CEO & MD of Air India. This appointment is subject to requisite regulatory approvals,” the Tata Group said in a statement.

Ayci was born in Istanbul in 1971. He is 1994 alumni of Bilkent University’s Department of Political Science and Public Administration, according to the Tata Group statement. After a research stay on political science at the Leeds University in the UK in 1995, he completed an International Relations Master’s program at the Marmara University in Istanbul in 1997.

“Ilker is an aviation industry leader who led Turkish Airlines to its current success during his tenure there. We are delighted to welcome Ilker to the Tata Group where he would lead Air India into the new era,” Chandrasekaran said.



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Turkish President Erdogan Says Cryptocurrency Law Is Ready as Crypto Regulator Fines Binance 8 Million Lira – Regulation Bitcoin News

Turkey’s President Recep Tayyip Erdoğan reportedly announced that the country’s cryptocurrency law “is ready” and will be submitted to parliament “without delay.” Meanwhile, Turkey’s Financial Crimes Investigation Board (MASAK), which oversees crypto exchanges, has reportedly fined Binance Turkey over violations found during liability inspections.

Turkish Cryptocurrency Law ‘Is Ready’

Turkish President Recep Tayyip Erdoğan said at a meeting with journalists Friday that the country’s cryptocurrency law is ready, ABC Gazetesi reported. While providing information on crypto legislation, Erdogan said:

The law is ready, we will send it to the parliament soon without delay.

Following Erdoğan’s announcement, the state-owned Anadolu news agency reported on Saturday that the Turkish Financial Crimes Investigation Board (MASAK) has fined Binance’s Turkish exchange (BN Teknoloji) 8 million lira ($751,314) over violations found during liability inspections. Without providing further details, Anadolu detailed:

The fine imposed on BN Teknoloji was the first of its kind after the authority took on responsibilities to oversee crypto asset service providers in May.

Binance Turkey subsequently issued a statement emphasizing that it “openly” communicates and cooperates with regulatory and supervisory authorities. The exchange added that it “actively follows the changing policies, rules, and laws in this new field.” Furthermore, Binance Turkey said it strives to “create a sustainable, healthy, and safe ecosystem.”

In September, President Erdoğan said that Turkey is “at war” with cryptocurrency. Moreover, Binali Yıldırım, deputy chairman of the Justice and Development Party (AK Party), said: “Unfortunately, cryptocurrency also opens the door to grievances. So, it’s something that needs serious control.”

In May, Turkey published some rules for crypto trading platforms in the official gazette after a couple of cryptocurrency exchanges — Thodex and Vebitcoin — were investigated for fraud. The Turkish central bank has also banned the use of cryptocurrencies for payments.

Tags in this story
Crypto law, Erdogan, Erdogan bitcoin, Erdogan crypto, Erdogan cryptocurrency, Recep Tayyip Erdoğan, Turkey, turkey bitcoin law, turkey crypto law, turkeys cryptocurrency law, Turkish, turkish cryptocurrency law

What do you think about President Erdoğan’s statement and Binance being fined 8 million lira? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Turkish lira whipsaws from historic low after Erdogan announces rescue plan

A money changer holds Turkish lira and U.S. dollar banknotes at a currency exchange office in Ankara, Turkey December 16, 2021.

Cagla Gurdogan | Reuters

Turkey’s lira has charged back from record lows at breakneck speed, seeing wild swings after President Recep Tayyip Erdogan revealed a plan to support the battered currency and protect local deposits against market moves.

The lira hit a day high of 11.0935 per dollar in early trading Tuesday — gaining as much as 20% against the dollar — but later pared some gains to trade at 12.77 around 2 p.m. in Istanbul. It marks a dramatic improvement from a record low of more than 18 to the greenback hit Monday before the president’s announcement.

Despite the wild swings, the lira is still down more than 40% against the dollar year-to-date.

In a speech Monday evening, Erdogan outlined steps to guarantee savings in lira, saying that the government will step in and make up losses to lira deposits if their value against hard currencies falls beyond the interest rates set by banks.

It’s an unconventional approach chosen by a president with unconventional economic beliefs: Erdogan has long railed against interest rates, calling them the “mother of all evil” and insisting that increased rates cause inflation, rather than cool it down.

His longtime refusal to raise rates and apparent control over central bank monetary policy has played a large part in the lira’s historic plummet that’s seen it go from around 3 to the dollar in 2016 to 18 to the dollar this week. Inflation in Turkey currently sits at 21%.

The details?

Concrete details on the president’s scheme are still yet to be seen — and analysts are skeptical.

“The recent move is clearly very significant but it is also worth noting that the Lira only recovered the losses it made in the last two weeks and the depreciation year-to-date is still very sizeable,” Goldman Sachs analysts wrote in a note Tuesday.

Ultimately, the measures don’t appear to address the fundamental issues that have led to high inflation and currency depreciation in the first place.

And deposit holders with access to loans at rates similar to the national interest rate “[have] the incentive to borrow to buy real assets or FX, given the current and expected inflation rates,” the Goldman analysts said, rather than hold more lira, as the government wants them to do. “Thus, we think that this measure is unlikely to structurally stabilise inflation or the exchange rate,” they added.

Root causes ‘not addressed’

Piotr Matys, an analyst at InTouch Capital, which provides market information to institutions, similarly stressed that the root causes of Turkey’s currency crisis were going unaddressed.

Erdogan’s announced measures “have not addressed the underlying issues that underpin the bullish bias in USDTRY [dollar to lira],” Matys told CNBC. “Interest rates are too low with inflation well above 20% and set to accelerate further in the coming months after the lira plunged.”

Turkey’s government is “clearly determined to stay on course set by President Erdogan who insists that Turkey must change its economic model by lowering interest rates significantly to reduce its reliance on foreign capital,” Mayts said. He added that a key question is “whether Turkish households have sufficient trust in the administration that they will be compensated for potential losses if they switch their savings from dollars into liras.”

Moreover, financial compensation for potential losses from the Turkish treasury or central bank are likely to be very costly. “This is a credit negative development as it puts additional FX risk on the public sector balance sheet,” the analysts at Goldman Sachs wrote.

“As long as the administration continues to implement Erdonomics,” Mayts said, “sustainable reversal in USDTRY is unlikely.”

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