Cryptocurrency in Turkey A Guide

Turkey's cryptocurrency market stands as one of the world's most robust, boasting nearly 5 million cryptocurrency platform accounts. However, in April 2021, the government imposed a ban on using cryptocurrencies for goods and services, citing concerns about the perceived risks associated with such transactions. Despite this restriction, trading in cryptocurrencies remains permissible and holding crypto assets is entirely legal within Turkey.

The intentions of the government

Presently, the status of cryptocurrencies in Turkey lies within a legal grey area, but Ankara is actively considering and preparing new legal measures in response to their usage. This development brings optimism to cryptocurrency enthusiasts. As reported by Bloomberg, the government is exploring the creation of a central custodian bank aimed at mitigating counterparty risks. Furthermore, lawmakers are in the process of simplifying the registration procedures for new cryptocurrency exchanges and are even considering the possibility of allowing direct conversion of cash to cryptocurrency in Turkish lira, potentially paving the way for a more streamlined and accessible crypto landscape.

Mustafa Elitaş, ruling party AKP’s deputy head, told the parliament on January 6 “The aim is to regulate the system, to prevent malicious intent, protect investors and prevent victimization.”

Much like the global trend, interest in cryptocurrencies has surged within the Turkish population in recent years. Cryptocurrency has gained popularity, particularly as an alternative to traditional assets like gold and the US dollar, serving as a hedge against inflation. BTCTurkPro, one of the country's largest domestic cryptocurrency exchanges, records an average daily transaction volume of approximately $300 million. Another homegrown exchange, Paribus, witnessed remarkable growth in its user base, surging from 1.5 million to 5 million users in 2021. Paribus facilitates Turkish users in utilizing their bank accounts for cryptocurrency transactions in Turkish lira, with daily trading volumes skyrocketing from $20 million in 2020 to over $500 million by the end of 2021. Moreover, international exchanges such as Coinbase and Binance also maintain a significant presence within the Turkish market.

The importance of the crypto world in Turkey

The pervasive influence of cryptocurrency in Turkey is palpable, impossible to overlook. In bustling urban hubs like Kadikoy and Taksim, brick-and-mortar cryptocurrency exchanges have sprung up, further cementing its presence. Local cryptocurrency transactions surged past one million daily in March of the previous year. The cityscape itself bears witness to the crypto frenzy, with advertisements and commercials targeting investors peppering the urban landscape and gracing television screens. On various channels, alongside the latest Turkish lira to fiat currency news tickers, you'll find real-time updates on Bitcoin's value. For foreigners with cryptocurrency investments, Turkey offers a welcoming environment, making it seamlessly convenient to utilize their digital assets within the country.