Today Turkey banned cryptocurrency causing bitcoin to drop over 4%. This ban is one of the strictest ones in the world. Turkey is one of the only countries to completely ban crypto and the strictest country in Europe on crypto. The Turkish government banned cryptocurrency because the central bank stated that highly volatile, unregulated, crypto could be used to fund illicit activities. The law prohibits the use and purchasing of cryptocurrencies.
“Their use in payments may cause non-recoverable losses for the parties to the transactions and include elements that may undermine the confidence in methods and instruments used currently in payments,” The Turkish central bank stated
Like many citizens around the world the Turkish had been investing their money into crypto as a more stable currency than their own. The Turkish Lira had already been experiencing high inflation and crypto did not help the central bank fix that. As a solution the decision was a complete ban on the assets. The ban obstructed the Turkish crypto market which had been gaining rapid growth. In addition the new law slows the nation’s technological markets and personal gain for many civilians. Many experts have stated that this will cause more harm than good to the citizens of Turkey as a more regulated market slows economic growth.
The Turkish are not the only ones affected as bitcoin fell over 4%. Followed by Ethereum and Ripple with a 6%-12% fall. The crypto market has slowly been recovering since the ban. Yet it is believed that this blow may stun the market for some time before things pick up again. This ban is a great test to see its benefits and drawbacks and could potentially change some countries decisions on regulation. India has been considering a ban yet the drawbacks and effects could change the opinion of parliament.
