Collapse of cryptocoin exchange in Turkey | VeBitcoin

[Ultegra134]

It's the second cryptocurrency in Turkey that's collapsing, after facing financial strains, according to a brief statement made on their website. Earlier this month, Turkey's central bank has moved into banning the use of digital assets for payments, while Turkish authorities have blocked Vebitcoin's bank accounts and detained four people.

Some Turks have switched to using cryptocurrencies to protect their savings from soaring inflation and the devaluation of their currency, the Turkish Lira. At the same time, the whole "Bitcoin is a bubble story" is on the rise again.

What are your thoughts about this incident, it's the second exchange so far that has shut down, what if other countries follow such measures too?


Source: https://www.cnbc.com/2021/04/26/turkish-bitcoin-exchange-vebitcoin-collapses-amid-crypto-crackdown.html

[bekti3]

I don't know for sure what Turkey did by arresting the 4 people who were found guilty. Apart from the current crisis facing Turkey, hopefully it will not affect other countries that are already running and friendly with Bitcoin. Because if the reason is a way of securing finances from heavy inflation, it is clear that this is commonplace and in fact true.

However, what is very unfortunate about Turkey at this time is that the situation in Turkey still has the hands of a state that does not like Turkey's policy as one of the countries that clearly rejects western countries, especially America and Russia regarding their political world.
I see this from a different angle, so please appreciate it if something goes wrong.

[mk4]

As bitcoin's price and adoption grows, people really gotta expect more of this. A pretty common trend is pretty much countries with currencies that are weakening faster than usual. So yea, if you're in such a country, you might want to prepare for the worst. Just to be sure.

Just comes to show how important peer-to-peer exchanges are for getting people to continue having access to buying/selling bitcoin.

[dothebeats]

There's no helping cryptocurrency exchanges in Turkey right now. The regulations and restrictions imposed by the government makes it so that exchanges would not be able to thrive and survive. The move to disallow people to use bitcoin into something useful is rather distasteful and not really supporting Turkish people for growth. Forcing people to just use their national currency exclusively in the midst of a high inflation economy would do no good for the people, especially if the government is not actively tackling the matter.

As for the arrested persons, it could be that they are involved in a crime or something. But the point still stands: banning the utility of cryptocurrencies isn't a solution to their economic woes.

[avikz]

It's the second cryptocurrency in Turkey that's collapsing, after facing financial strains, according to a brief statement made on their website. Earlier this month, Turkey's central bank has moved into banning the use of digital assets for payments, while Turkish authorities have blocked Vebitcoin's bank accounts and detained four people.

Some Turks have switched to using cryptocurrencies to protect their savings from soaring inflation and the devaluation of their currency, the Turkish Lira. At the same time, the whole "Bitcoin is a bubble story" is on the rise again.

What are your thoughts about this incident, it's the second exchange so far that has shut down, what if other countries follow such measures too?


Source: https://www.cnbc.com/2021/04/26/turkish-bitcoin-exchange-vebitcoin-collapses-amid-crypto-crackdown.html

This incident is called "abusing the power of government". It is a forced murder of a business that is thriving in progressive countries like Japan and USA. But for the regressive countries, it is just a risk flagged by their beaurocrats and the banking lobby. What happened in Turkey is not an exception because many other countries are following the same path. It is a mindset which keeps a poor always poor. Sadly, India will soon follow the same path and destroy a multi million dollar industry around it!

[mrongoz22]

The collapse of crypto exchanges is due to the Turkish Central Bank banning the use of cryptocurrencies because there is a significant risk involved in such transactions, and they fear irreparable damage, in a law published in the Official Gazette on Thursday night, Turkey Central Bank. said crypto and other digital assets cannot be used as a means of payment ,,
maybe that is the reason why crypto prices fall in Turkey ..

[Ultegra134]

It's the second cryptocurrency in Turkey that's collapsing, after facing financial strains, according to a brief statement made on their website. Earlier this month, Turkey's central bank has moved into banning the use of digital assets for payments, while Turkish authorities have blocked Vebitcoin's bank accounts and detained four people.

Some Turks have switched to using cryptocurrencies to protect their savings from soaring inflation and the devaluation of their currency, the Turkish Lira. At the same time, the whole "Bitcoin is a bubble story" is on the rise again.

What are your thoughts about this incident, it's the second exchange so far that has shut down, what if other countries follow such measures too?


Source: https://www.cnbc.com/2021/04/26/turkish-bitcoin-exchange-vebitcoin-collapses-amid-crypto-crackdown.html

This incident is called "abusing the power of government". It is a forced murder of a business that is thriving in progressive countries like Japan and USA. But for the regressive countries, it is just a risk flagged by their beaurocrats and the banking lobby. What happened in Turkey is not an exception because many other countries are following the same path. It is a mindset which keeps a poor always poor. Sadly, India will soon follow the same path and destroy a multi million dollar industry around it!

It's frustrating to say the least, and it's only the beginning. I believe that more countries are going to adopt such practices, in order to refrain from people owning crypto, due to it being money that isn't being taxed by their government. Cryptocurrency is providing people with the opportunity to earn and keep their money away from banking corporations, keeping their funds out of sight.

[mersal]

It's the second cryptocurrency in Turkey that's collapsing, after facing financial strains, according to a brief statement made on their website. Earlier this month, Turkey's central bank has moved into banning the use of digital assets for payments, while Turkish authorities have blocked Vebitcoin's bank accounts and detained four people.

Some Turks have switched to using cryptocurrencies to protect their savings from soaring inflation and the devaluation of their currency, the Turkish Lira. At the same time, the whole "Bitcoin is a bubble story" is on the rise again.

What are your thoughts about this incident, it's the second exchange so far that has shut down, what if other countries follow such measures too?


Source: https://www.cnbc.com/2021/04/26/turkish-bitcoin-exchange-vebitcoin-collapses-amid-crypto-crackdown.html

Even if a central banks wants to ban the crypto assets, they should provide certain time period for their people to convert their assets into fiat or any form of legalized assets, if it happens all of a sudden then it has some other intention like they don't want the new people to get rich with their cryptos investments, etc.

[Gamerholic]

At first there was a lack of proper control and understanding, after the collapse and flight of some of the founders, there were arrests and bans. I think this is some kind of harsh and rash actions just to calm the angry users. In any case, this does not bode well for the cryptocurrency industry in Turkey. Trust in national institutions in this sector has been undermined - now we should expect an influx of cryptocurrency from Turkey to other exchanges with a good reputation.

[bL4nkcode]

The reason of banning bitcoin/crypto in turkey is bs. The bank said only vecause of its volatility and being anonymous-being tied to illegal actions. It's all about censorship and corruption. Those are people's money, why they care where it will be spent and used. With the current inflation rate on turkey's lira who the hell would like to store their assets on such currency.

And why they have to detained those operators if the exchanges are regulated. Just because they ban crypto, suddenly all existing exchange is now illegal and have to file charges? Their government sucks.

[TimeTeller]

The reason of banning bitcoin/crypto in turkey is bs. The bank said only vecause of its volatility and being anonymous-being tied to illegal actions. It's all about censorship and corruption. Those are people's money, why they care where it will be spent and used. With the current inflation rate on turkey's lira who the hell would like to store their assets on such currency.

And why they have to detained those operators if the exchanges are regulated. Just because they ban crypto, suddenly all existing exchange is now illegal and have to file charges? Their government sucks.

That is why I don't think other countries will follow on this unfair treatment to crypto users.
You are very right, if these exchanges are regulated in the first place, why the need to detain its operators?
Something is wrong with this situation. But unfortunate situation for all crypto users residing in that country.
Maybe, their government can't get the full control of these crypto users, the reason why they decided to shut it down.

[mk4]

Even if a central banks wants to ban the crypto assets, they should provide certain time period for their people to convert their assets into fiat or any form of legalized assets, if it happens all of a sudden then it has some other intention like they don't want the new people to get rich with their cryptos investments, etc.

While I'm really not sure if they actually put out an actual heads up warning in advanced; and while that should be a better way to do it(in the perspective of the citizens), we really shouldn't assume that the central banks/governments would always make moves in the people's favor.

[pooya87]

This is a move in the right direction which is more peer to peer exchanging of fiat to bitcoin. So in the  end this is good news. I suspect we will have a transition phase to decentralized exchanges and then back to centralized exchanges in some parts of the world soon, as first CEX starts and gains popularity, then they crack down on them and push people to DEX then after the DEX volume grows and government sees they can't do anything about it and have lost the little power they had with CEXes they go back to letting CEX start up again.
This kind of transition will be even more palpable in corrupt systems with huge inflations.

[OcTradism]

Not your Keys, not your Bitcoin
Hacked Exchanges since 2011
[Updated] List of cryptocurrency exchange hacks

People don't listen to warnings and they only pay attention on advice when they experience unforgettable losses themselves. Exchanges are not places to store your Bitcoin and cryptocurrency. You can lose them in seconds, minutes, hours, days or months after you make your deposits and store your coins on crypto exchanges.

[fladnaG]

Turkey should adopt crypto and create a license for exchanges and wallets. Similar to the MSB license that binance and ownr have.

[Ultegra134]

Not your Keys, not your Bitcoin
Hacked Exchanges since 2011
[Updated] List of cryptocurrency exchange hacks

People don't listen to warnings and they only pay attention on advice when they experience unforgettable losses themselves. Exchanges are not places to store your Bitcoin and cryptocurrency. You can lose them in seconds, minutes, hours, days or months after you make your deposits and store your coins on crypto exchanges.

I do agree with your statement but only to a certain degree. It's definitely not ideal to store, I don't see a point in doing that either, when there are plenty of even online wallets that provide you with the private keys. However, what will someone do when he's trading on a daily basis? I'm not an experienced crypto user, let alone an experienced trader, but I used to conduct up to 10 transactions within a week. It leaves me with no choice than to have my coins on an exchange.

[MishaSER]

Not your Keys, not your Bitcoin
Hacked Exchanges since 2011
[Updated] List of cryptocurrency exchange hacks

People don't listen to warnings and they only pay attention on advice when they experience unforgettable losses themselves. Exchanges are not places to store your Bitcoin and cryptocurrency. You can lose them in seconds, minutes, hours, days or months after you make your deposits and store your coins on crypto exchanges.

Of course you are right, but there are traders who move the entire market, what should they do? They should trade on the stock exchange, who likes who wants to make money for the short term.

[The Sceptical Chymist]

Cryptocurrency is providing people with the opportunity to earn and keep their money away from banking corporations, keeping their funds out of sight.

That might be true, but the extent to which it's happening is likely nothing compared to the wealth being hidden in offshore accounts by the ultra-rich.  And most tax evasion happens by smaller businesses that keep their own books.  Crypto is nothing compared to all of that.

But that doesn't mean governments won't use it as an excuse to either ban or severely regulate crypto....assuming they can.  They can put laws on the books, of course, but enforcement might be a bitch.

None of that explains why these scams happened, though.  The right thing to do would be to give customers their funds back and close down the exchange if they don't think their business is going to be viable anymore.  The scamming is just greed and enough balls to think they were going to get away with it--which usually doesn't happen when you're talking about millions of dollars being stolen.

[stompix]

There's no helping cryptocurrency exchanges in Turkey right now. The regulations and restrictions imposed by the government makes it so that exchanges would not be able to thrive and survive.

The same regulations made the guy from Thodex empty the wallets and run from the country will all the coins?
What restrictions were imposed in one week that would make an exchange claiming to do 50 million in trades even when shutting down would collapse in a week?
Why are other exchanges not hit by this? Maybe because the rules and regulations were not about trading at all and those exchanges have just used this to pull an exit scam? Sound far more realistic, isn't it?

This incident is called "abusing the power of government". It is a forced murder of a business that is thriving in progressive countries like Japan and USA.

Oh, wait, when Japan did these regulations and Binance packed the bags and fled the country, who was the progressist then?

I see a lot of people criticizing the move by the government and it's astonishing to see in this topic the same people who when the ban on purchasing goods with crypto in Turkey was published were saying it's to a big deal, this won't affect trading, people will find a way, the government can't control nada and now everyone is running for the hills the government is destroying everything...
Just lol!

[Ultegra134]

Cryptocurrency is providing people with the opportunity to earn and keep their money away from banking corporations, keeping their funds out of sight.

That might be true, but the extent to which it's happening is likely nothing compared to the wealth being hidden in offshore accounts by the ultra-rich.  And most tax evasion happens by smaller businesses that keep their own books.  Crypto is nothing compared to all of that.

But that doesn't mean governments won't use it as an excuse to either ban or severely regulate crypto....assuming they can.  They can put laws on the books, of course, but enforcement might be a bitch.

None of that explains why these scams happened, though.  The right thing to do would be to give customers their funds back and close down the exchange if they don't think their business is going to be viable anymore.  The scamming is just greed and enough balls to think they were going to get away with it--which usually doesn't happen when you're talking about millions of dollars being stolen.

That’s true, the wealthiest always had their ways to avoid taxation and keeping their funds out of sight via offshore accounts. However, that's easier said than done, for the majority of us. I believe that cryptocurrency is an easier way to «export money», it's a gateway on moving funds out of sight, without providing you with much trouble, the majority out there can set up a wallet and an account on a major exchange.

According to some rumors and other sources I've read, the increased inflation lead a large percentage of Turks to use and store cryptocurrency. Perhaps if the percentage was large enough, it could potentially raise red flags from their government. Taking into account Turkey's dictatorship policies, it's not unlikely.