Turkish Central Bank Forbids use of cryptocurrencies as a mean of Exchange.

[verita1]

With this law, Turkish Central Bank minimizes and prevents the advances that are being achieved with the use of cryptocurrencies in that country.
A few days ago I saw on Twitter a business in Turkey that said accepting AVAX. The announcement referred to the AVAX token of a new blockchain network and I assume that the owners of this premises also accept other cryptocurrencies. I was so happy and I started to imagine that in the future both in Turkey and anywhere in the world that is a good start. But the obstacles posed by the world's Central Banks to what can be achieved with bitcoin is unheard of. We must continue as we are doing not stop and conquer our financial freedom with cryptocurrencies.

[Leonardo7]

Very dumb move by the Turkish Central Bank. How do you even sensor Peer-peer payment system? Don't these people think before they act? they want to control everything and slowly make the people poor. This is going to have no negative effect on the crypto world, Turkish economy doesn't define world trade, it's a good trade and investment destination. The real crypto guys will bypass this and I expect some litigation against this Central Bank action.

[Sithara007]

Very dumb move by the Turkish Central Bank. How do you even sensor Peer-peer payment system? Don't these people think before they act? they want to control everything and slowly make the people poor. This is going to have no negative effect on the crypto world, Turkish economy doesn't define world trade, it's a good trade and investment destination. The real crypto guys will bypass this and I expect some litigation against this Central Bank action.

Check the original thread again. The central bank hasn't banned the P2P transactions. The ban only covers usage of cryptocurrency as a form of payment, to purchase goods and services. There is no ban, if you want to sell your cryptocurrency for fiat (either using the mainstream exchanges or the P2P platforms). So the solution is actually very simple. You first need to convert your BTC to fiat, before purchasing these goods/services.

[Kong Hey Pakboy]

Very dumb move by the Turkish Central Bank. How do you even sensor Peer-peer payment system? Don't these people think before they act? they want to control everything and slowly make the people poor. This is going to have no negative effect on the crypto world, Turkish economy doesn't define world trade, it's a good trade and investment destination. The real crypto guys will bypass this and I expect some litigation against this Central Bank action.

They want to stimulate the circulation of fiat to fiat so I don't necessarily say that it is a dumb move, but you are right they can't really censor everything unless they become a totalitarian state. If it doesn't define world trade then we shouldn't worry about it, let them sort out their problem, I believe that this is going to be the same as what CBN did so I wouldn't worry that much.

[Xinarae*]

The reason the Turkish central bank uses cryptocurrency is because they think that cryptocurrencies more profitable will improve their economy and trade a lot but it is very harmful for the poor people. They don't know anything about crypto and use Fiat currency online virtual currencies are being traded on various exchange platforms including Bitcoin, Etherium, Ripple and Litcoin. These virtual currencies are not legal tender issued by the legitimate authorities of any country there is no recognition of any financial claim the central banks need to think about the people of the country before the state takes such a step.

[Findingnemo]

Central banks don't understand the blockchain that is why they are saying blockchain network is in ban.

Dump people are in control of a country's financial management is why many country never go in the growing direction. Anyway with this ban the p2p transactions will increase so the prices also may increase due to increased risk of trading on peer to peer so Holders will take more advantages while government lose their tax revenues.

[Gyfts]

It's interesting to see that Turkey has come out with very generic guidelines. They have basically stopped anyone doing anything into cryptos and have even stopped everyone to create any business models around cryptocurrencies but this would hamper the growth of their blockchain industry too. Primarily also destroyed it as a medium of payment even in International Transactions. But here is a very interesting loophole at least for the investors/ traders that I have found:

(2) Payment and electronic money institutions cannot mediate on platforms offering trading, custody, transfer or issuance services regarding crypto assets or fund transfers from these platforms.

If we go by the literal explanation of these lines, this means that no exchange can be built up in Turkey and no person of turkey can operate an exchange or wallets. But there is no restriction on any person holding crypto in their private key wallets or in international exchanges. The law is applicable to the institutions and not the users of these institutions. Moreover, I cannot see the list of punishments in this circular? Is it that the defaulters will be tried under the Central Bank Act which already contains punishments.

The verbiage is clear, they want banks to have central authority on the currency in the country, and so anyone that establishes a competitor will be fined, or jailed. No one can stop anyone from using crypto, it's P2P. The whole idea of regulation is to scare people from mass adoption, and restricting companies from practicing freely. Realistically, most people need exchanges if they're going to turn their local currency into a crypto.

Turkey isn't the first country to do this. I noticed first world countries haven't been so explicit about banning crypto, but that's because they don't view crypto as a threat, yet.

I don't think in the current shape and form bitcoin is a big threat to the banks or fiat. 95% use cryptos and bitcoins only for investment holding and quick returns while rest 5% also don't transact with it on daily basis. So I don't think it's due to compeition. A more prominent reason could be liquidity. They would not want the liquidity of their currency to go out of the system as it could lead to devlation. Yes Scaring the people away is obviously the main idea and talking about companies, I don't really think a lot of companies outside US are looking at Bitcoin as an investment option.

People are holding right now, but what about the future?

Sure, people use it as a get rich quick type scheme, day trade, or treat it as an asset akin to gold or silver, but 5 years ago, people laughed at BTC as any sort of investment so it isn't unreasonable to think that down the line, it'd be used as a day to day currency. Plus, also consider that first world countries keep printing out bills of money as if it grows on trees, so at some point people are going to switch currencies when they realize their own country's currency has turn to rubbish due to inflation.

[davis196]

1.Nobody outside Turkey cares about the opinions of the Turkish central bank in regards to Bitcoin and cryptocurrencies.This news won't have an impact over the crypto markets.
2.Turkey is country,that has a very weak national currency.The Turkish central bankers are probably afraid that Turkey might become "the next Venezuela" and the people will dump the national currency for Bitcoin.
3.I guess that the Turkish central bank/government is in a "denial phase",when it comes to cryptocurrencies.
This is just a phase and the Turkish government might adopt crypto payments in the future.

 

[Kamarah]

Can a bank forbid people from exchanging goods and services for any kind of reward? If a citizen chooses to be rewarded in his/her community's tokens or with other assets... they mean the citizen has broken  his country's law ?

Well, people could build Decentralized networks/systems/applications that can help "governments" regulate and earn from them  without  letting the governments  violent their good ideals/principles. People who use them to commit serious crimes could lose their right to be protected by the network, or their rights to the benefit from the ideals.

Turkish central bank has issued a ban on using Bitcoin. They argue that there are many great risks for electronic money assets. Because encryption assets do not have to follow any management and monitoring mechanism, as well as not managed by central agencies. Market value of electronic money fluctuates excessively and they can be used for illegal operations such as money laundering. I wonder if this command gives a discount Bitcoin? There are all citizens in Turkey who will stop BTC.

[Renampun]

Central banks don't understand the blockchain that is why they are saying blockchain network is in ban.

Dump people are in control of a country's financial management is why many country never go in the growing direction. Anyway with this ban the p2p transactions will increase so the prices also may increase due to increased risk of trading on peer to peer so Holders will take more advantages while government lose their tax revenues.

blockchain technology is still new, it's natural that they still don't understand the benefits 'lol'...
taxes, taxes, and taxes, that's all they are really aiming for, without taxes they won't get their wages 'lol'. p2p trading will definitely be an option and let them bite their fingers for tax-loss 'lol'.

[teosanru]

It's interesting to see that Turkey has come out with very generic guidelines. They have basically stopped anyone doing anything into cryptos and have even stopped everyone to create any business models around cryptocurrencies but this would hamper the growth of their blockchain industry too. Primarily also destroyed it as a medium of payment even in International Transactions. But here is a very interesting loophole at least for the investors/ traders that I have found:

(2) Payment and electronic money institutions cannot mediate on platforms offering trading, custody, transfer or issuance services regarding crypto assets or fund transfers from these platforms.

If we go by the literal explanation of these lines, this means that no exchange can be built up in Turkey and no person of turkey can operate an exchange or wallets. But there is no restriction on any person holding crypto in their private key wallets or in international exchanges. The law is applicable to the institutions and not the users of these institutions. Moreover, I cannot see the list of punishments in this circular? Is it that the defaulters will be tried under the Central Bank Act which already contains punishments.

The verbiage is clear, they want banks to have central authority on the currency in the country, and so anyone that establishes a competitor will be fined, or jailed. No one can stop anyone from using crypto, it's P2P. The whole idea of regulation is to scare people from mass adoption, and restricting companies from practicing freely. Realistically, most people need exchanges if they're going to turn their local currency into a crypto.

Turkey isn't the first country to do this. I noticed first world countries haven't been so explicit about banning crypto, but that's because they don't view crypto as a threat, yet.

I don't think in the current shape and form bitcoin is a big threat to the banks or fiat. 95% use cryptos and bitcoins only for investment holding and quick returns while rest 5% also don't transact with it on daily basis. So I don't think it's due to compeition. A more prominent reason could be liquidity. They would not want the liquidity of their currency to go out of the system as it could lead to devlation. Yes Scaring the people away is obviously the main idea and talking about companies, I don't really think a lot of companies outside US are looking at Bitcoin as an investment option.

People are holding right now, but what about the future?

Sure, people use it as a get rich quick type scheme, day trade, or treat it as an asset akin to gold or silver, but 5 years ago, people laughed at BTC as any sort of investment so it isn't unreasonable to think that down the line, it'd be used as a day to day currency. Plus, also consider that first world countries keep printing out bills of money as if it grows on trees, so at some point people are going to switch currencies when they realize their own country's currency has turn to rubbish due to inflation.

Uhh! I don't quite agree with you on this. Yes, it's true that people have changed a bit about cryptocurrencies but it's only because of profits that they are currently seeing due to the bull market. In the bear rally before this bull market, there weren't a lot of people investing in cryptos. Moreover using it as a currency is something altogether different and opposite. When you have entered into something with an idea that it's value will appreciate why would you decide to use it as a payment method?

Secondly, I am quite convinced with the fact that deflationary currency is not an answer to an inflationary currency. It's just trying things in a different way and not a solution at all. There are just theories around it so far.

[sujon5]

The Turkish government banned Bitcoin and crypto as a payment method, but the citizens can still buy invest in crypto. So I don't think it's such a serious problem.

[Lucius]

From OP ->

Dissidents, democracy protestors, opposition leaders and independent journalists worldwide are beginning to realize this, from Minsk to Lagos to Los Angeles to Buenos Aires.

It seems to me that it was only a matter of time before a country like Turkey would make such a move, and it is possible that this is not the end, and that they just make a test balloon to feel the pulse of the nation. We all know how the 2016 coup attempt ended, and as a result, the Turkish authorities have become even more cautious and suspicious - and I believe that Bitcoin and other cryptocurrencies do not fit well into the existing system.

Anything that could in any way undermine the cohesion of the current politico-military system is basically undesirable - nothing we have not already seen in authoritarian regimes like China or Russia where Bitcoin has not fared well, or is still in the gray zone.

[oHnK]

From OP ->

Dissidents, democracy protestors, opposition leaders and independent journalists worldwide are beginning to realize this, from Minsk to Lagos to Los Angeles to Buenos Aires.

It seems to me that it was only a matter of time before a country like Turkey would make such a move, and it is possible that this is not the end, and that they just make a test balloon to feel the pulse of the nation. We all know how the 2016 coup attempt ended, and as a result, the Turkish authorities have become even more cautious and suspicious - and I believe that Bitcoin and other cryptocurrencies do not fit well into the existing system.

Anything that could in any way undermine the cohesion of the current politico-military system is basically undesirable - nothing we have not already seen in authoritarian regimes like China or Russia where Bitcoin has not fared well, or is still in the gray zone.

Regardless of the country's political problems, it is very clear that the Turkish government is running out of ways to solve the Crypto problem.  With the current policies, the Turkish Government has lost the great potential of Crypto.  If they take another policy by imposing all Crypto activities with KYC, and imposing taxes on all transactions then this is better than banning them.  Crypto volatility is nothing to worry about.  Just need a friendly policy.  Because the Crypto ban is not the end of its users.  There are many ways to keep investing in Crypto.

[wxxyrqa]

I think that it is necessary to take into account the decisiveness of the head of state Erdogan and his character, as well as ambitions in solving various problems. No discontent of the people will cope with this and therefore the problem must be solved only on the political plane. Erdogan positions himself with a democratic president and therefore he needs to provide real facts in favor of cryptocurrency so that the Turkish government changes its decision.

[TimeTeller]

From OP ->

Dissidents, democracy protestors, opposition leaders and independent journalists worldwide are beginning to realize this, from Minsk to Lagos to Los Angeles to Buenos Aires.

It seems to me that it was only a matter of time before a country like Turkey would make such a move, and it is possible that this is not the end, and that they just make a test balloon to feel the pulse of the nation. We all know how the 2016 coup attempt ended, and as a result, the Turkish authorities have become even more cautious and suspicious - and I believe that Bitcoin and other cryptocurrencies do not fit well into the existing system.

Anything that could in any way undermine the cohesion of the current politico-military system is basically undesirable - nothing we have not already seen in authoritarian regimes like China or Russia where Bitcoin has not fared well, or is still in the gray zone.

Regardless of the country's political problems, it is very clear that the Turkish government is running out of ways to solve the Crypto problem.  With the current policies, the Turkish Government has lost the great potential of Crypto.  If they take another policy by imposing all Crypto activities with KYC, and imposing taxes on all transactions then this is better than banning them.  Crypto volatility is nothing to worry about.  Just need a friendly policy.  Because the Crypto ban is not the end of its users.  There are many ways to keep investing in Crypto.

Crypto users residing in that country will always find a way how to get around with their government.
Because outside their jurisdiction, they can freely transact with crypto.
I don't think Turkey's Central Bank approach in crypto is a smart move from their end.
They can regulate the use of it and get the taxes, but totally banning it will just leave them behind on this technology.
While others are creating crypto-friendly cities, they are doing the opposite approach.

[bryant.coleman]

The Turkish government banned Bitcoin and crypto as a payment method, but the citizens can still buy invest in crypto. So I don't think it's such a serious problem.

Spot on. The Turkish Lira (national currency) has been facing issues for sometime now, and therefore it was not surprising to see the central bank curbing the usage of other currencies. During the last four weeks, the currency has devalued by more than 10%. The government is also facing acute revenue shortage, due to the fall in tourist arrivals. Still I have to admit that the Turkish government acted in a very mature manner, when compared to their colleagues in India and Nigeria. 

[beerlover]

Since, there are not many places that offer a service to be a middleman between a crypto payer and a fiat seller, that means there is not really that much of a problem. I mean how many companies there are in Turkey that allows people to use their services to pay crypto everywhere they go? Not much I suppose, so this doesn't really change anything.

I am fine with crypto not being a means of exchange as a service, that is understandable, if I can use it directly (which this law doesn't stop) that is enough for me, crypto should be accepted, not forced to people and that is why I think this is not bad, sure it would be better if it wasn't applied but it is not that bad when this happens neither. As long as crypto itself is not banned which obviously they won't ban, that is a good news, people really do love crypto in Turkey and that should continue as much as possible.

[bittick]

I think it have something to do with the government trying to increase the price of their currency since it seems the turkish currency (lira) has been going quite the down hill this month alone and maybe they thought the money is going out of their country and probably to cryptocurrency market and currently there's phenomenon that happens globally regarding the decrease of daily volume in stock market because most of people are just switching to cryptocurrency therefore a country with economy that's not so strong afraid of it affecting their country. Hopefully turkish people could still use P2P so the ban wont matters.

[Lucius]

Spot on. The Turkish Lira (national currency) has been facing issues for sometime now, and therefore it was not surprising to see the central bank curbing the usage of other currencies. During the last four weeks, the currency has devalued by more than 10%. The government is also facing acute revenue shortage, due to the fall in tourist arrivals. Still I have to admit that the Turkish government acted in a very mature manner, when compared to their colleagues in India and Nigeria.  

The Turkish lira has had big problems for years, have people forgotten what happened in 2018? It seems to me the matter was much more serious than today. Of course that year was very difficult for crypto as the long crypto winter began, and people were quite disappointed after the price started to fall sharply. Today, people see a way out and security in crypto, and people need to be controlled precisely through the monetary system and make them dependent on that system.

The 2018 Turkish currency and debt crisis (Turkish: Türk döviz ve borç krizi) was a financial and economic crisis in Turkey. It was characterized by the Turkish lira (TRY) plunging in value, high inflation, rising borrowing costs, and correspondingly rising loan defaults. The crisis was caused by the Turkish economy's excessive current account deficit and large amounts of private foreign-currency denominated debt, in combination with President Recep Tayyip Erdoğan's increasing authoritarianism and his unorthodox ideas about interest rate policy.

As you can see from the quotes above, the Turkish president and his methods have not pulled the country out of the crisis, and maybe the whole 2018 thing can happen again. As for India and Nigeria compared to Turkey, I would not agree that any of them did the right thing - because bans of any type will only produce a counter-effect, because people today have a window to the world (internet) and want their human rights - and they can rightly say that if something is completely normal in many countries of the world, why is it forbidden in our country?

As I have already written, restrictions of this type only occur in countries where human rights are still at a very low level.