Crypto in Turkey

In Turkey, the popularity of crypto is only rising. A 2022 study demonstrated that the country comes second after the Netherlands in terms of crypto-related searches. The people who live in Turkey accumulated over 4 million such searches. Interestingly enough, the same study revealed that Dogecoin is especially popular there: it even surpassed Ethereum.

What is more, this is not a completely new trend: in 2021a Turkish crypto trading platform Paribu found that the number of people who make crypto transactions in the country had increased by 10 times within a year (from 0.7% to 7.7%).

In this article, we are going to find out what the situation is like in Turkey when it comes to crypto and what makes digital currencies so sought after there.

What is the legal status of crypto in Turkey?

The Turkish government first attempted to regulate crypto in April 2021, when the Central Bank of the country defined digital assets. It is important to note that the document banned using it as a payment method in legal transactions, but it did not prohibit trading crypto.

Further measures aimed at controlling the sphere were supposed to be rather strict, according to the drafts of the laws that appeared in 2021. For instance, the regulators wanted to ban self-custody wallets.

However, such measures were not taken lightly by the crypto enthusiasts, so the bill was postponed and it seems like the lawmakers have not come back to finding a solution. There is an opinion that the reason for that is the upcoming elections: the authorities do not want to anger a significant part of the population that has crypto assets.

Lately, there seems to be a shift in the mindset though from tight regulations to cautious support. For example, in his speech in October 2022, the President of Turkey, Recep Tayyip Erdogan, emphasized the desire to see the country as a producer of different products and services in the sphere of blockchain. He also stated that his administration is studying the subject thoroughly, so we can probably expect new developments in the sphere of the legal status of crypto.

Crypto projects from Turkey

Speaking of the Turkish government, it announced a project powered by blockchain fairly recently. It is called e-Human and once launched, the service is going to give access to information about education and career opportunities from the state’s authorities as well as from the private sector. What is more, the country’s authorities plan on launching a Metaverse for educational purposes.

Other projects that originated in the country include, for example, BtcTurk, a crypto trading platform launched in 2013. It became the first such project for the country. The platform allows customers to carry out transactions using the Turkish currency lira (TRY). By the way, you are welcome to SimpleSwap if there is a need to buy or sell crypto with TRY.

Another project that was founded in the country is Colendi, a decentralized credit-scoring and online banking platform that deploys blockchain technology. The project was started in 2016.

It is also worth mentioning that a Turkish car manufacturer Togg partnered with Ava Labs. Together, the companies are planning to design services that are based on smart contracts on Avalanche blockchain to enhance autonomous mobility.

Why is crypto popular in Turkey?

Probably one of the most important reasons that make crypto so popular in Turkey is inflation. The national currency has been decreasing in value at a fast pace with an annual rate of over 180%, according to some estimations. This has led to the growth of prices and the fact that it is becoming increasingly difficult to save.

Even though cryptocurrencies might be extremely volatile and unpredictable, sometimes they are still seen as a good alternative to keeping savings in the lira.

In addition to that, some people see investing in crypto as a way to make a profit without the links to the national economy and having to leave the country.

Conclusion

Even though the World of Crypto is facing numerous challenges at the moment, we can still witness the growing interest and popularity across the globe. From Turkey, which seems to be particularly interested in this sphere both at the level of population and the government, we can probably expect new and exciting projects very soon.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.