Has Turkey lost its “war” against cryptocurrencies?

Experts believe that the Turkish government’s recent moves to impose stricter rules on cryptocurrencies, including a ban on their use, “have not caused even a small amount of discomfort” among retail investors and digital currency traders.

It seems as if the legislation had no effect on the cryptocurrency at all,” Arda Güny, a Turkish investor in the cryptocurrency field, told Forcast News.

Johnny added: “I know the environment in Turkey well. First, Turkey has not banned the cryptocurrency in general, but only prohibits payment by cryptocurrency, and people can still buy and legally keep cryptocurrency assets, but they cannot pay through it.”

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He continued, “People are still eager to buy and trade crypto assets .. It’s crazy, I can’t believe how everyone is rushing into cryptocurrencies, so, in short, people are still enthusiastic and interest is growing.”


Johnny’s opinion coincides with those of other people active in the cryptocurrency markets, including Ozgur Juner, CEO of PTC Turk, one of the largest cryptocurrency exchanges in the country.

“The regulation is intended for digital money institutions and electronic payment gateways … I do not expect that the regulations governing cryptocurrencies will go any further and limit investment purposes as well,” said Gunner, head of the BTC Turk, in statements to CoinDisk.

The latest sign of Ankara’s desire to rein in the digital currency sector was a new requirement that cryptocurrency exchanges based in Turkey report all cryptocurrency transactions involving 10,000 Turkish liras ($ 1,200) or more to the Board of Inquiry. In the country’s financial crimes, otherwise known as Masak.

This was announced by Turkish Minister of Treasury and Finance Lotfi Elvan, just two weeks after “Theodex”, one of the largest cryptocurrency exchanges in Turkey, was involved in a $ 2 billion fraud.


According to Elvan, the Financial Crimes Investigation Board has prepared strict guidelines for cryptocurrency trading, with special attention to monitoring transactions.

“The Financial Crime Investigation Board has full audit authority over cryptocurrency exchanges,” Elvan said.

Just a month ago, Turkey’s central bank announced a ban on the use of cryptocurrencies to pay for goods and services as part of Ankara’s efforts to regulate digital assets.

The Turkish government is monitoring the growing interest in cryptocurrencies, fearing that criminals will use them for illegal activities.

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In a statement issued in mid-April, the Turkish Central Bank said, “Crypto assets carry great risks, as they can be used in illegal procedures due to their anonymous structures,” adding: “They are not subject to any regulatory and supervision mechanisms nor the central regulatory authority.”

Turkey’s demand for cryptocurrencies has grown since the country’s annual inflation rate rose to more than 16% in March for the first time since 2019, as investors seek to hedge against the devaluation of the Turkish lira and take advantage of the rise of the bitcoin currency.

Tightening controls in the cryptocurrency space might have been expected, and the recent rules were unwelcome, but it appears that market participants, even some of the largest, have ignored concerns that the sector is under threat.