News
Garanti BBVA Launches Cryptocurrency Wallet – Ledger Insights
Last year Turkish bank BBVA guaranteed revealed the launch of Garanti BBVA digital assets. It initially had a digital asset wallet running in beta mode, but it went live earlier this month. According to the bank, it is the first branch of a Turkish bank to launch a self-developed cryptocurrency wallet. Earlier this year neobank Misyon collaborated with Taurus for safekeeping.
Garanti BBVA has 12 million digital customers and 11.6 million mobile customers, with digital customers making up the vast majority of the business. Customers can use the mobile app to “transfer and store” Bitcoin, Ethereum, and the stablecoin USDC.
“We will continue to grow by expanding our asset diversity and service infrastructure in the future,” said Çağrı Süze, BBVA Garanti EVP and President of BBVA Digital Assets.
Turkish cryptocurrency legislation
In the holding company’s announcement we noticed the reference to “transfer and deposit” rather than buying, selling and exchanging. However, the Turkish website explicitly includes trading.
Although Turkey does not yet have in-depth regulation on cryptocurrencies, there is a 2021 regulation that aims to ban the use of crypto-assets directly or indirectly for payments.
Second Norton Rose full light it also prohibits:
- the development of business models by banks, payment institutions and electronic money institutions that directly or indirectly use cryptographic assets; AND
- payment institutions and electronic money institutions to carry out intermediation activities for platforms involving the purchase, sale, custody, transfer or offer of cryptocurrencies.
This last point does not appear to include banks.
Meanwhile, a more comprehensive cryptocurrency law was tabled in parliament last month. Overall it seems broadly supportive of the asset class.
Considering the significant depreciation of the Turkish lira, which is now worth less than a fifth of its value five years ago, the availability of cryptocurrencies or stablecoins in US dollars could prove attractive to Turkish customers.
Although banking support for cryptocurrencies is now quite common in some regions, BBVA was ahead of its time. BBVA Switzerland launched digital asset services in 2021, which were not limited to accredited investors.