Turkish non-existing ban on crypto currencies

2 Min Read
380 Words

I have been reading posts about future of crypto currencies and saw that people think cryptos are banned in Turkey. It is not.

They try to put some regulations to protect small buyer and small shop owners. Most people don't have a stable financial future in Turkey and buying crypto with credit card may create a big problem for small trader in long term. It seems that they want to stop transfer of liquidity to foreign markets, but people paying with their credit cards, with the money they don't have, to buy coins, creates an extra burden on local fiat currency.

They also blocked payments with crypto, which means you can't buy and sell things in stores. This also tries to protect shop owners who wanted to accept payments in coins by selling their inventory in crypto currencies. I assume this is because of volatility of the market. If shop owners kept coin in their accounts from payments, a bearish market could create big gaps in their accounts.

In a country, which has high welfare level could allow those transactions but in a pandemic and a fragile economy as Turkish economy could not handle those kind of fluctuations right now. As far as I know, buying coins is allowed with bank deposits. President of Central bank of Turkey explained on TV that there are not any bans on crypto as investment option through bank deposits. I believe, turkish government is well aware of future of blockchain transactions.

News about two crypto exchanges going down because of fraud is very upsetting for small buyer. Although traders had no chance, one of the traders who is irrelevant to Theodex reported on twitter that Theodex selling DOGE very cheap and there may be a problem in exchange or some kind of fraud going on. If people knew that they could protect themselves. It is still great how blockchain allows people seeing those big trades on explorers. Blockchain is a great technology and I believe in its future. In european and NA countries there are regulations to set up exchanges but Turkey doesn't have. I believe, regulating exchanges in Turkey will bring stability to the sector and stop these kind of frauds. Bigger exchanges demand regulations to prove their trustworthiness.

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