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- Turkish Bank orders crackdown on crypto asset providers across the country
- Iira takes a hit even after consistent trials by the Government to bring it up against the dollar
- Crypto ban affects small scale businesses like restaurants as well, reducing their customer sales
Amongst various nations opening up to cryptocurrency, many are fearing the volatile market and its consequences on the fiat currency of the country. Leaving the decision in the hands of the Government, the Government is bound to crack down on such an unstable market that threatens the sovereignty of the Government’s control over its financial markets. Turkey has also jumped in the same venn diagram as China, with an intense crypto crackdown that has left the investors balancing on their tip toes with no side to join.
Crackdown sought after by the Turkish Central Bank on crypto asset providers
The Government has assigned money laundering and terror financing regulations to the crypto market and trade, making the unprotected investors face a weakened currency and a highly inflated economy. In the month of May, a Turkish Presidential decree, effective immediately, stated that crypto market must operate under the anti-money laundering and terrorism regulations set. Crypto asset service providers are under scrutiny through the anti crypto decree and the previous regulations imposed on crypto exchanges in the country. An additional burden of the illegal use of digital assets on their platform also lay on these asset providers shoulders persistently.
Presidential Decree further devalues Lira
Before the Presidential decree was passed, the Central bank of Turkey had banned the use of cryptocurrency for transactional payments, calling it a risky method. The ban hopefully planned to stabilize the national currency, Iira. The Bank fears that the losses caused by cryptocurrency cannot be traced back to their origin and cannot be accounted for because of the anonymous nature of the digital asset.
Even a restaurant owner in Istanbul states that cryptocurrency was surging his business as almost 5-10% of the customers chose to pay through it most of the time. However, after the bills and the decrease, it is almost impossible for him to accept any sort of cryptocurrency. Turkey being the highest crypto trader region in the entire middle east area, has taken a blow in the statistics because of the Presidential decree.
The Turks have been trying to stop the Iira from devaluing against the dollar and hence, took steps against cryptocurrency. This hit them hard as it further devalued the fiat money by 10% in recent weeks. The Central Bank of Turkey looks desperate to raise the value of Iira and can take endless measures to reach its objective.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
