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- Turkey has a high rate of cryptocurrency adoption as of 2020. According to statistics, the country has one of the greatest cryptocurrency exposures in the world
- The government began to tighten regulations and consider a tax system. The Turkish Ministry of Finance and Treasury voiced worries about cryptocurrencies in March
- They’ve also been used in illegal acts because of their anonymous structures, according to the report
Turkey has a high rate of cryptocurrency adoption as of 2020. According to statistics, the country has one of the greatest cryptocurrency exposures in the world. According to surveys, around 16% of Turkish residents have used or owned cryptocurrency. The cause of the large volume may be traced back to an uncontrolled atmosphere that had been flourishing for years. Turkey gained a reputation as a crypto-friendly country as a result.
Unfortunately, the state’s long-arm would ultimately catch up with the Bitcoin boom. Turkish residents, like many others across the world, rushed to bitcoin, hoping to profit from the cryptocurrency’s year-long bull run. In addition, they hope to safeguard themselves from inflation. Turkey’s uncontrolled cryptocurrency industry has come under increased scrutiny this year.
The government began to tighten regulations and consider a tax system. The Turkish Ministry of Finance and Treasury voiced worries about cryptocurrencies in March. They also stated that they will be working together on the issue with a number of local regulators.
The government introduced laws in April prohibiting the use of cryptocurrency as a method of payment for goods and services. This information was published in the Turkish government’s official newsletter. On April 30, the prohibition went into force. In a statement explaining its decision, the bank stated that transactions using cryptocurrency posed irreversible dangers.
Neither any regulation and oversight procedures nor a central regulatory authority applies to crypto-assets. Their market prices can be extremely volatile, according to the central bank.
They’ve also been used in illegal acts because of their anonymous structures, according to the report. Investing, on the other hand, was not deemed unlawful. Crypto exchanges in Turkey may still be able to help with crypto trading. Local media reported the collapse of two Turkish crypto exchanges, Thodex and Vebitcoin, shortly after the payment restriction was announced. As a result, many investors lost a lot of money.
Faruk Fatih Ozer, the founder, and CEO of Thodex has been placed under international arrest by Turkish authorities. He is said to have escaped to Tirana, Albania’s capital, with $2 billion in investor assets. Following that, Central Bank Governor Sahap Kavcioglu stated that the Finance Ministry was working on more comprehensive crypto laws.
Prior to the prohibition, numerous establishments in Turkey had begun taking payments for the sake of convenience. More bitcoin transactions would be possible if the sector was adequately regulated, according to Altug Isler, the founder of Kripto Teknik. He went on to say that the central bank had chosen the easiest option by shutting everything down.
The President of Turkey claimed there was a distinct battle against cryptocurrencies during a Youth Meeting Program on Friday. This was in answer to a question on whether the Central Bank has opened up to cryptocurrency and what his thoughts are on it. Erdoan stated that the proliferation of digital assets is absolutely not an issue in Turkey.
He also stated that bitcoin would not be prioritized and that Turkey will continue to use its own currency, which he feels is an important element of the country’s identity. The President’s remarks follow the Central Bank’s declaration that it will establish a Digital Turkish Lira Collaboration Platform to help with CBDC research and development. On September 15, the Central Bank of the Republic of Turkey announced this event.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
