Legal classification and regulation of cryptocurrencies: A comparative analysis of Turkey and the European Union

This study examines the legal classification and regulation of Bitcoin and other cryptocurrencies in Turkey and the European Union from a comparative perspective. The research analyzes the existing legal frameworks and regulatory gaps concerning cryptocurrencies, comparing them with electronic money and traditional financial instruments. Key issues such as decentralization and irreversibility are discussed in terms of their legal implications. The findings indicate that Turkey lacks a clear legal definition for cryptocurrencies, highlighting the need for new regulatory initiatives. In contrast, the European Union has established a more comprehensive framework through regulations like MiCA. Issues related to taxation, criminal use, and investor protection remain critical discussion points in both Turkey and EU countries. In conclusion, clarifying the legal framework for cryptocurrencies is essential for protecting investors and preventing financial crimes. This comparative analysis of Turkey and the EU highlights the advantages and disadvantages of different legal approaches and offers recommendations for developing an effective regulatory framework. Keywords: Cryptocurrency, Bitcoin, legal regulation, electronic money, Turkey, European Union