Turkey’s banking sector has outlawed the usage of cryptocurrency and crypto assets, such as Bitcoin, to buy products and services, noting the potential for “irreversible” harm and significant transaction costs. On Friday, the bank released regulations in the Official Gazette stating that cryptocurrency and other digital assets dependent on distributed ledgers should not be seen as a transaction medium, either explicitly or indirectly.
The main group said in a statement that digital currencies are “neither responsive to any oversight and surveillance frameworks nor a central constitutional agency,” among other security concerns.
“Payment service companies would not be able to create marketing strategies under which benefits the user are used explicitly or indirectly in the distribution of banking services and digital currency issuance,” according to the statement, and therefore will not be able to offer any products.
According to the Turkish central bank, using cryptocurrencies can result in a lack of losses for something like the parties involved in the transaction. It says that these damages may include elements that weaken confidence in existing payment systems and implements.
What Is India’s Position on The Subject?
Turkey’s announcement comes after Royal Motors, the country’s only distributor of Rolls-Royce, including Lotus automobiles, always became the first to declare that it would welcome cryptocurrency payments. Apple, Amazon, and Expedia are only a few of the global giants that support such fees, whereas, no corporation in India has publicly stated that it would consider cryptocurrency as compensation.
However, previous studies have said that several foreign crypto firms are recruiting engineers and rear programmers in India and paying them in cryptocurrency to increase acceptance and circumvent local laws. Since the nation lacks a regulatory mechanism to regulate cryptocurrency, these transfers are hardly legal nor illegal.
Cryptocurrencies, such as Bitcoin, have been criticized by the Indian government. It drafted a bill later this year, sparking rumors that it would impose a blanket prohibition on all cryptocurrencies except those authorized by the State Bank of India. Investors and market actors have consistently expressed opposition to the proposal, delaying a final judgment.
However, the government took the first significant step last month, requiring all the nation to report their cryptocurrency transactions in their financial statements. This became one of the first big moves toward more accountability between the contractor and employer. Companies will be required to disclose profits and losses on virtual currency or cryptocurrency transactions, as well as the value of their holdings. It would also be necessary to exchange information on any donations or advances received from third parties to sell or trade-in cryptocurrencies or virtual currency.
The cryptocurrencies understand the culture – which has a fixed supply of 21 million units – was cited as an impediment by the firm’s analysis team in a recent study. Around 18.7 million bitcoins have already been mined so far, accounting for 89 percent of all bitcoins in production. The year in which all bitcoins are supposed to be released is 2140, nearly a century from now.
“Bitcoin’s market capitalization of $1 trillion renders it much too significant to overlook,” according to the study. “Some people believe bitcoin is an asset, while others believe it is an asset, and yet others believe it is a portfolio, but its market capitalization is in the top ten of both currencies and stocks.”
Bitcoin’s price has risen 600 percent year to date, prompting debate about whether a liquidity crisis is about to break or a long-term investment. After an already strong February, it put on a show in March, touching a new high of over $60,000 and touching a new high of $1 trillion in market cap.
More than $1 billion is thought to have been invested in cryptocurrency in India by over 7 million stakeholders. While it is highly doubtful that the Indian government would adopt the Turkish bank’s lead and enforce a temporary measure, don’t be shocked if further investment and broker recommendations are released.
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Key Features
- Turkey banned bitcoin
- Transactional threats are cited as the reason for Turkey’s choice
- In India, there isn’t a single business that accepts crypto payments
