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Crypto Banned in Turkey: Now What?

Paying with Bitcoin (BTC) will soon be illegal in Turkey. The issue of crypto transfers has become a political hot topic after the Central Bank of the Republic of Turkey announced on April 16 that the use of cryptocurrencies will be banned. The rule, which will take effect on April 30, also prohibits the use of wallets (to store your crypto coins), ICOs and crypto exchanges.

Turkey’s first crypto check is a “how-not-to-do” rather than a “how-to”, according to Ahmet Usta (editor-in-chief of Blockchain Turkey Platform and co-author of Blockchain 101). According to him, the Central Bank would ban two applications:

“The first prohibition is to pay with cryptocurrency for the purchase of goods. The second ban is exclusive to payment processors and crypto suppliers. It makes it illegal to trade, store, convert or convert crypto assets into fiat money or transfer money through an exchange. ”

“The good thing about the announcement is the classification of crypto assets within a legal context. That’s happening now for the first time,” said Usta, adding that the critical tone of the announcement is damaging the foreign image and trustworthiness of the company. Turkey. Cryptocurrencies are now classified as “intangible assets created virtually using a distributed network”. According to Ahmat, it should be seen as a currency.

“In the discussion of the use of cryptocurrency in foreign trade, the announcement that it is not a means of payment could lead to problems later on,” he says.

Erkan Z, a former financial journalist, compares the Turkish Central Bank’s decision to Russian crypto legislation. There, cryptocurrencies are forbidden to use as a means of payment, but trading is just legal. Ankara is thus demanding that investors will only use banks to send and receive local currency to and from crypto exchanges. With this, the government wants to stop criminal activities. Crypto Italia is popular.

Cryptocurrency is not the same as fiat money

“This is the Central Bank’s way of letting people know that cryptocurrencies are not monetary assets, despite the fact that people were not already using the people ‘kripto para’ (” cryptocurrency “in Turkish) as a means of payment,” said crypto. information officer Smail Hakk Polat. In a Twitter thread, he claimed that the new regulations are diminishing banks’ creativity and stunting the growth of crypto payment startups like DigiliraPay.

One of the local businesses directly affected by the new law is DigiliraPay. Its business model includes a Know Your Customer (KYC) mechanism and uses blockchain technology to facilitate the issuance of cryptocurrencies for everyday use. “Unfortunately, we will have to cease operations on April 30, which is the day the legislation will go into effect,” DigiliraPay CEO Serkan Bayar told Cointelegraph Turkey. “At a time when globally renowned companies such as Mastercard, Tesla, PayPal and Starbucks have begun to accept payments via cryptocurrencies, we are very sorry that these services will not be available in our region,” he added.

Bayar clarified that in the DigiliraPay ecosystem, tax avoidance is difficult as all transactions are logged on the blockchain, making them fully auditable. “The latest Central Bank regulations are not geared to the needs of the corporate world and can only hinder the adoption of cryptocurrencies in our region.”

The second aspect of the ban ensures that consumers can no longer deposit or withdraw money from crypto exchanges using local PayPal substitutes (PayPal has been banned in Turkey since 2016). After the announcement by the Central Bank, Papara, a prominent provider of digital wallets has become the subject of discussion on Twitter. Netherlands crypto is popular.

“More than a million people have used Papara wallets to trade on crypto exchanges in the past five years,” said Ahmed Faruk Karsl (Papara CEO). He added the following:

“If the goal was to deter malicious users by not giving them access to crypto, then this is not the way to go. The methods we use to control transfers to crypto exchanges are more strict than those used by many banks. To date, millions of transactions have been completed without a single instance of theft. ”

What would better enforcement have looked like?

Usta (a co-author of Blockchain 101) has a clear answer: “We need to build an environment conducive to creativity. It cannot be denied that regulation including negative verbs encourage creativity

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These cryptocurrencies have outperformed the broad market since 2019, which delivered 750% returns

Cryptocurrencies that use the so-called proof-of-stake method for approving transactions have outperformed the broad crypto market since 2019. The same goes for cryptocurrencies from trade exchanges such as Binance, analysts from investment bank Goldman Sachs conclude in a new study.

The total crypto market has delivered a return of 750 percent since 2019. Cryptocurrencies come in many flavors and the performance of different types of digital coins also varies. Cryptocurrencies that use the so-called proof-of-stake method to approve transactions have outperformed the broader crypto market since 2019. The same goes for digital coins from crypto exchanges.

This is the conclusion reached by analysts at investment bank Goldman Sachs in a new study

Examples of trading exchange cryptocurrencies include Binance Coin and FTX Token, which are issued by the Binance and FTX trading forums, respectively. Moveco.io has enough information. The way in which transactions are approved on the digital log (blockchain) of a crypto currency therefore plays a role. Bitcoin uses the so-called proof-of-work method, while other cryptocurrencies use the proof-of-stake method.

With the proof-of-stake method, users can be given the right to approve transactions on the digital log of a crypto coin by making a part of their holdings of the relevant coin available as a ‘stake’. Approving transactions can itself generate a fee.

In proof-of-work, users use enormous amounts of computing power to solve complex puzzles. Whoever solves such a puzzle first may approve a transaction and will receive a number of new coins to be issued as a reward. In this way, among other things, bitcoin transactions are approved by so-called ‘miners’.

Crypto market up 750 percent in value since 2019

“As the crypto market matures, it may pay to look at sub-segments to understand the technical characteristics most valued by investors and the prospects for practical applications,” Goldman Sachs analysts write in their report.

Other key conclusions from the report include:

Since the end of 2019, the entire crypto market has delivered a return of about 750 percent.

Bitcoin has underperformed the broad market with returns of around 500 percent, while ether has returned 2,000 percent. https://renovato.io/ has enough information. Cryptocurrencies that have a strong focus on user anonymity, such as monero, have underperformed the broad market since 2019.

As for the verification method for approving transactions on a digital log, the proof-of-work method used by bitcoin is associated with a high energy consumption of computers. This is seen as problematic from an environmental point of view.

The Ethereum network, to which the cryptocurrency Ether belongs, has made a major technical adjustment this month and is now preparing for the switch to a proof-of-stake method in early 2022. This is expected to significantly reduce the energy consumption of the Ethereum network. will reduce.

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What is AMP and why is it the only crypto price that is in the plus this week?

The cryptocurrency market saw a small rebound earlier this week, but in general it is clear that we are still in a downward trend: none of the top 100 largest cryptos are in the green this week. Well, almost none, because Amp (AMP) is no less than 60% in the plus!

AMP is a new token that serves as a kind of digital collateral providing instant and verifiable guarantees for any kind of value transfer. AMP is a platform that serves as a kind of insurance to guarantee any kind of asset transfer. AMP supports a large number of blockchains including Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and more. Dogecoin price is high.

Amp can collateralize any type of asset transfer, whether digital or physical. Today, $AMP is providing the collateral for instant, fraud-proof transactions made using more than 25 different digital assets.

https://youtu.be/KBpa0MRkDuI

AMP token developed by Flexa

The AMP token, developed by Flexa together with Consensys, launched last September, but the price only started to rise in late January, around the time the altcoin season started. The price reached a new all-time high (ATH) of $0.083 yesterday and was still at $0.005 at the end of January. That is an increase of no less than 1,560%.

The price did make a significant dip down between mid-May and early June, but in the night from Thursday to Friday the price jumped sharply again. This probably has to do with the infamous ‘Coinbase effect’. When this US cryptocurrency exchange lists, or announces, a new crypto, we often see its price skyrocket immediately. Cryptofriends.io is helpful.

Prices from minus to plus

Nevertheless, the price of AMP dropped again after this peak yesterday, but the entire crypto market is turning red today. While all prices are in the minus compared to a week ago, AMP is still 60% in the plus. It seems that AMP may now have found a new bottom around USD 0.6 and are slowly starting to climb again.