The government of Turkey has ruled out a total ban on cryptocurrencies. Sahap Kavcioglu, the Turkish central bank Chief stated in an interview on Wednesday that the Turkish government is now working on regulating cryptocurrencies in the country, rather than totally banning them. Initially, news of the banning of cryptocurrencies in Turkey came in last week and was meant to start taking effect on the 30th of April, 2020.
It is expected that more details regarding the crypto regulation protocol in the country will be released in the next two weeks. Cryptocurrencies in the State was initially banned as a result of loopholes allegedly identified in the crypto ecosystem by the Ministry of Treasury and Finance.
More recently, however, the Turkish government seems to have found a more effective means of tackling these loopholes. The government however still opposes the use of cryptocurrencies for direct and indirect payments, stating that this system exposes individuals to high risks given the volatility of cryptocurrencies.
The Central Bank of Turkey also went further to state that the lack of regulations in the crypto space was one of the key reasons that prompted the initially proposed ban. The announcement of the ban came in shortly after a famous vehicle company in Turkey, Royal Motors announced that it will now accept cryptocurrencies as a means of payment.
The Effect of The Regulations And Proposed Ban
In the meantime, however, crypto investors and organizations in Turkey are not totally free from the effects of the regulations and proposed ban. Vebitcoin for example, a crypto exchange in Turkey has put an end to its operations due to its declining financial situation. Thodex, also a crypto exchange in Turkey has stopped operating and reports indicate that the CEO of Thodex eloped with investor’s funds worth over $2 Billion.
At the moment, crypto users in the country keep their fingers crossed and hope that the adjustment to the regulations that will be announced in the next two weeks will be beneficial to both crypto traders, investors, and the government of Turkey.