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Turkey to Get a Cryptocurrency Regulation, for Better or for...
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Turkey to Get a Cryptocurrency Regulation, for Better or for Worse

Turkey’s regulatory group, the Capital Markets Board (CMB), is planning to accelerate its Bitcoin and cryptocurrency regulation efforts by 2020.

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The move comes largely due to pressure from public institutions and local authorities. The CMB will likely emphasize surveillance, regulation, and audit of Bitcoin, as well as for cryptocurrencies in general, according to a cryptocurrency news site in Turkey. To date, Turkey does not have a fixed law governing cryptocurrency usage in Turkey.

Bitcoin Gaining Grounds in Turkey

Turkey currently shows more substantial Bitcoin usage than other countries in Europe. The overall EU population using Bitcoin is around 25%. Turkey has more than 45% of its population active in Bitcoin and other cryptocurrencies.

Nevertheless, the CMB has already stated it will increase regulation. The board may take steps not only for cryptocurrencies but also for cryptocurrency exchanges. Sources close to the CMB say that the risks in cryptocurrencies are substantial, but the governance will help control it.

With the current climate so lax, the government has seen cryptocurrencies used for nefarious purposes. This is, of course, possible with cash, but regulations are nevertheless helpful.

 

Turkey’s control systems are just one of many countries seeking to implement greater levels of oversight. The US government is also considering regulations, particularly of Bitcoin and other cryptocurrencies.

Bitcoin Seems Like a Complex Commodity

The issue is largely due to the risk of money laundering and terrorist usage. However, the difficulty in collecting taxes also raises some concerns for national governments.

Other more authoritarian regimes like China have already constrained Bitcoin usage and trading. The Chinese government has now announced the issuance of its own internal digital currency—a far cry from open markets.

READ  South Korea Sets Rules for Virtual Currencies and Digital Assets

The remarkable thing about Bitcoin is its buoyancy in times of complexity. The most recent announcement is certainly traumatic, but Bitcoin’s utility is not mitigated by the news.

In fact, as governments increase control, it seems greater levels of freedom are sought by the populace. The demand increase will likely also see increases in value.

Huobi Explores the Turkey Market

In October 2019, Huobi announced that it will open a fiat gateway in Turkey by the end of last year, starting with a lira/ (TRY) tether (USDT) pair. It means users will be able to deposit lira via wire transfer and exchange it for tether, and then trade it with other cryptocurrencies Huobi Global supports on its platform.

The exchange is offering Turkish users a 50% discount on transaction fees at 0.1%, and even lower transaction fees at 0.07% for those who hold its native token Huobi Token (HT), per the announcement.

“Turkey is an important region for us,” said Huobi Global CEO, Livio Weng. The exchange first announced its plans to expand to Turkey in June of last year, saying that it will be moving “aggressively” into the country over the next 12 months.

In the announcement, Huobi said bitcoin is as popular as foreign exchange (forex) in Turkey, where 20% of the population owns some form of cryptocurrency and said lira is the fifth most popular fiat-crypto pair in the world.

  1. […] financial regulator is ramping up efforts to develop a new framework that allows the federal government to oversee the use of cryptocurrencies throughout the […]

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