Cryptocurrency is gaining popularity worldwide. Although it may be new to the mainstream, cryptocurrency was first introduced in 2009 with Bitcoin as its flagship currency. Today there are over 900 cryptocurrencies available, which currently gives a market capitalisation of around USD 20 billion.
Cryptocurrency trading has been increasing in Turkey in recent years. It’s likely because the Turkish lira (TRY) has been weakening against other major currencies, making it more expensive to trade in traditional currencies. As a result, many Turks have turned to cryptocurrency to protect their investments.
Most popular crypto in Turkey
The most popular Turkey crypto is Bitcoin and Ethereum. Bitcoin is currently worth around $8,000, while Ethereum is worth around $470. The Turkish lira is also weak against the dollar, so those who invest in USD-based cryptocurrencies can benefit from a strong dollar and a rising value.
The topic of “crypto” has gained immense attention ever since Bitcoin skyrocketed to almost 20 times its initial value this year. It generated enough interest that made more people look into cryptocurrencies and their mechanisms.
They are decentralised, but why are they valuable?
There are many possibilities to answer this question; some say it is because of blockchain technology; others say it is tough to counterfeit or forge them. What makes cryptocurrencies so unique is that governments or banks do not regulate them. The global market cap for all digital currencies is just over $150 billion as of June 22, 2017, according to CoinMarketCap. That’s a fraction of the value of gold ( about $7 trillion ) and silver (about $20 trillion), but it’s enough to make people take notice.
Cryptocurrencies offer an exciting investment opportunity because they’re not tied to the global economy like fiat currencies are. Their value can go up or down, but they don’t necessarily follow the same trends as stocks, bonds, or commodities.
Crypto regulating in Turkey
The Turkish government has taken a proactive stance on regulating cryptocurrency trading within its borders. In February 2017, the government issued a statement warning its citizens about the risks associated with digital currencies. A few weeks later, Turkish regulators announced they would regulate its cryptocurrency exchanges.
The main concern for Turkish regulators is consumer protection. They want to ensure that people aren’t being scammed or taken advantage of by fraudulent exchanges. The government also has levied taxes on cryptocurrency transactions to generate revenue.
Crypto fraud in Turkey
So far, there haven’t been any significant incidents involving cryptocurrency fraud in Turkey. It may be because Turkish regulators are getting involved in space. As more and more people become interested in crypto trading, we can expect to see more regulation from the government.
Turkish exchanges
Turkish exchanges are not the biggest globally, but most of them are working on complying with UK’s regulations. LocalBitcoins is one of the larger platforms, with around 2,000 bitcoins traded every week. That amounts to approximately USD 1 million according to current prices to put that into perspective. There are currently 11 active bitcoin traders on the platform at any given time.
Many posts on social media have been about scams involving cryptocurrencies, but no official reports have been filed yet. The Future Investment Initiative event is scheduled for October 23. It will include top speakers from all over the globe discussing cryptocurrency investing and other economic topics, including finance and banking sectors.
A hedge fund in Turkey
One cryptocurrency hedge fund, Global Advisors, is opening an office in Istanbul to take advantage of Turkish investors’ growing interest in digital currencies.
Bottom line
Overall, Turkish regulators are trying to make sure that people are aware of the risks associated with digital currencies and doing their best to regulate the exchanges. The cryptocurrency market is proliferating worldwide, and Turkey is no exception. As more people get interested in trading crypto, we can see more government regulations to protect consumers. There are also many opportunities for investment in space, and we can expect to see more activity from Turkish exchanges.
