Bitcoin and cryptocurrency trading increases in Turkey just when the local currency, the Turkish lira, is having serious difficulties.
The volatility of the Turkish lira and the use of cryptocurrencies
In the past few days, the Turkish lira has had some highly volatile moments that even the cryptocurrency market has been impressed by.
Last Sunday, the Turkish lira fell to lows and then rebounded following a speech by President Erdogan, who announced measures to combat the currency’s loss of value.
In the meantime, the values of Bitcoin on Turkish exchanges have also been thrown off, so much so that BTC was priced 10% lower than the ratio in dollars.
Accomplice perhaps also this “depreciation” of Bitcoin, it seems that the Turks are just turning to cryptocurrencies to cope with the national economic difficulties.
Reuters reports that there have been as many as 1 million transactions in recent days, mainly concentrated on Bitcoin and Tether.
Bitcoin trading in Turkey, a law on the way
The high number of transactions has not gone unnoticed by local authorities, and it seems that soon Turkey will have its own regulation for cryptocurrencies.
That was confirmed by President Erdogan himself, as reported by several local newspapers.
According to what the Turkish president said, the law is ready to be sent to the Parliament. The contents, however, are not clear.
What is certain is that Erdogan intends to implement a plan that can lift the fortunes of the country’s economy, a plan in which the Central Bank will play a leading role. That suggests that cryptocurrencies will remain on the sidelines.
Cryptocurrency exchanges in Turkey
At the moment, trading cryptocurrencies in Turkey is allowed, but the law requires exchanges to operate by following KYC requirements and comply with strict regulations to prevent money laundering. These days, it is news that Binance Turkey is the first exchange to be fined for allegedly violating these rules. In fact, Binance has a special branch in Turkey, different from the main platform. However, this was not enough to stop the authorities.
The case of the exchange Thodex caused a bigger stir. The platform suddenly closed down in April, and users found themselves unable to act. The founder, a 27-year-old man, disappeared. More than 60 people have been arrested for the case.