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Crypto investment is alive and well in Turkey, due to the problems of the lira | Crypto News

Istanbul, Turkey – Just off Istiklal Road, the busiest passenger street in Istanbul, the occasional passerby stops to look out at a window showing the prices of cryptocurrencies on the NakitCoins window.

Only a few enter the store, but the brick-and-mortar exchange, which allows them to buy or sell Bitcoin and other crypto currencies, is a physical example of how sick lira Turks are chasing the popularity of cryptocurrencies in Turkey, though. recent history of shameful exchanges.

Interest in crypto among the Turkish people, as in the rest of the world, has grown over the years. But Turkey’s financial crisis has pushed millions of interested people to invest in Bitcoin, Ethereum and other currencies. The new converts are not just attracted to the promise of cryptocurrencies, which are prone to fluctuations, price fluctuations. They see real money as a valuable asset to protect their money as it is decorated with eggs which cost Turkey more than 40 percent of its value last year alone.

Growing interest in crypto is a new manifestation of Turkey’s search for people for reliable money, said Cem Yilmaz, who founded NakitCoins in 2018 and has now opened three branches across the country.

“Turkish people love to invest, it could be forex [foreign exchange], or gold, or now crypto, ”he said.

Yilmaz launched NakitCoins to help crypto-interest overcome their concerns of immersing money in a new virtual car for cash through existing ether exchanges.

The Turkish people are very fond of money.

Cem Yilmaz, founder, NakitCoins

“We were already exchanging a lot of Internet sites in Turkey, so we thought ‘Why not have something physical, where people can come in and ask questions and put a face to crypto, instead of just going online?'” He said.

Most of the NakitCoins customers today are foreigners, Yilmaz said, because current Turkish law makes it difficult to work with money in the Turkish lira directly. But he and other players in the crypto sector are hoping the new rules in practice will allow them to work directly.

‘Cryptolization’

Daily transactions in crypto in Turkey rose one million in March last year, according to data from Chainalysis and Kaiko viewed by Reuters.

The operation came after the lira was disrupted following the sudden removal of President Recep Tayyip Erdogan from the country’s central bank that month. Volumes began to decline in April, however, the central bank announced it was banning the use of crypto currency for payments. Then at the end of April, two cryptocurrency exchanges in Turkey – Thodex and Vebitcoin – collapsed, removing the savings of thousands of users.

But cryptomania powered back in the final months of last year, with sales volume above one million per day, after a series of central bank interest rates in the face of rising inflation observed. damage to the lira price.

Signs and television broadcasts are increasingly announcing the ways in which people can enter the crypto market, and on many television channels, recent Bitcoin prices are quoted along with the United States dollar and the euro.

Turan Sert, adviser to Paribu, Turkey’s largest online crypto exchange, said the recognition of the rise underscores how crypto is more likely to replace foreign currencies or cultural stores as gold as a fence against currency in the area whose value is covered and uncertain.

“In the past it was dollarization, which meant that to avoid fluctuations in currency, people kept their assets in dollars,” he told Al Jazeera. “Now what has happened recently is called cryptolization.”

Recent developments are called ‘cryptolization’.

Turan Sert, crypto exchange advisor

Paribu, which allows Turkish people to use their bank accounts to buy and sell crypto in the Turkish lira, has seen its users grow from 1.5 million at the opening of 2021 to 5 million by the end of the year, with daily trading averages rising from $ 20ma. day in 2020 to $ 500m by the end of 2021.

And your exchanges like Paribu and BTCTurk are not the only way to grow in the country for crypto investors. International exchanges such as Binance and Coinbase also operate in Turkey.

The exact number of Turkish depositors with crypto is difficult to compare because not all exchanges have publicly disclosed their data. But Sert estimates that there are between 10 and 11 million people.

“If the crypto people in Turkey formed their own political party, they would be the third largest party in parliament,” said Sima Baktas, a well-known lawyer on cryptocurrencies and co-founder of CryptoWomen Turkey, a non-profit organization that runs crypto seminars. public workshops.

Baktas, who estimates that about 14 million Turkish nationals with 84 million are holding cryptocurrencies today, said the growing number were driven by young people who are well versed in the internet and desperate to find a way to protect their money. as opposed to lowering the lira.

“It was not difficult to adopt the crypto sector, because we had a great potential,” he said. “After this, of course, came the Turkish lira, and how the economy we have today is deteriorating, and people are trying to find a reliable financial instrument to survive.”

Reject bad advertising

Crypto has exploded in popularity despite years of government warnings about the instability of the sector.

Back in 2017, officials warned the public that crypto was a myth that could collapse, while the Directorate of Religious Affairs in Turkey said Bitcoin and other cryptocurrencies were not allowed in Islam, because they had no value like gold, and were highly secretive. nor are they immune to the effects of terrorism.

If the crypto people in Turkey formed their own political party, they would become the third largest party in parliament.

Sima Baktas, co-founder, CryptoWomen Turkey

Last year the sudden collapse of Thodex and Vebitcoin cryptocurrency exchange was greeted with criminal charges and a wave of news reports of how Turkey was cheating with the crypto craze.

But Baktas said bad publicity does not prevent people from participating in the crypto industry.

“While television stations are talking about crypto now, and even though they are showing the worst news of crypto, the Turkish people are getting more and more involved in crypto, because they do not care about the bad news that portrays it as a bit unreliable.”

Meanwhile, after already banning crypto currency from payments, Turkish officials are working on new legislation that would seek to better regulate the sector.

This month Baktas and other crypto experts met with Ankara regulators to draft new rules that would help register new crypto exchanges, as well as allow exchanges like NakitCoins to buy and sell crypto in Turkish lira directly.

“The aim is to streamline the process, to prevent malicious intent, to protect investors and to prevent harassment,” Mustafa Elitaş, deputy head of the ruling Justice and Development Party in Parliament, said on January 6.

Elitaş has been meeting with experts such as Baktas and exchange representatives to discuss the new administration – a sign, says Sert, that the government is seriously considering.

“She is trying to understand the environment, and it has helped her to talk to the community, to better understand what is going on,” Sert said.

Rumors have been circulating in Turkey about what the new crypto rules could include, such as the imposition of a 40 percent tax on crypto profits – something Elitaş has openly opposed.




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