As a researcher with a background in economic analysis and experience living through periods of currency instability, I find the growing trend of the Turkish Lira (TRY) being used for cryptocurrency trading to be an intriguing development. The report from Kaiko Research highlighting TRY’s 19% market share, surpassing the euro (EUR), is a clear indication of this shift.
The Turkish Lira is now the third most commonly used traditional currency in crypto trading markets.
Based on data from Kaiko Research, TRY has surpassed the euro (EUR) with a 19% market share, marking a new record high reached in early June.
As a crypto investor, I’ve noticed that Turkey has been facing a significant challenge with inflation since the beginning of 2022. This persistent issue has led to an increasing market share for certain commodities and assets, reaching over 70% at its peak. Consequently, the value of the Turkish lira has taken a substantial hit as a result.
Due to Lira’s poor performance among fiat currencies, Kaiko’s research team suspects that Turkish residents are increasingly opting for cryptocurrencies as a protective measure. This shift has been observed in countries experiencing comparable economic situations.
As a financial analyst, I’ve identified foreign exchange volatility as another significant factor contributing to the recent changes and driving the adoption of cryptocurrencies.
In the previous period, foreign currency markets have experienced significant fluctuations. The causes include varying monetary approaches among different countries and an unprecedented number of elections slated for 2024, as reported by Kaiko.
As a researcher, I’ve observed some significant currency movements recently. Japan’s Yen hit a 30-year low in its exchange rate with the US Dollar. This means that one US dollar was worth more Yen than it has been for the past three decades. Similarly, Mexico’s Peso touched its lowest mark since October 2023 when comparing its value against other currencies. On a positive note, the British Pound surged to its highest point in two years versus the Euro.
All of these currencies have seen their purchasing power weaken.
Kaiko acknowledged that Binance‘s ongoing regulatory challenges might have boosted Lira’s expanding market dominance.
Over the past few years, several banking partners have distanced themselves from the cryptocurrency exchange as a result of heightened regulatory oversight.
In the past year, Paysafe, Binance’s previous UK partner responsible for processing GBP deposits, terminated their relationship with Binance due to regulatory ambiguity in the United Kingdom. Subsequently, Binance ended its partnership with Westpac, the Australian bank that facilitated AUD (Australian Dollar) deposits for the platform.
As a result, the platform had to delist GBP and AUD trading pairs.
Kaiko suggests this resulted in a lot of the market share to transition to TRY, pushing its volume.
As a crypto investor, I’ve noticed an increasing presence of TRY in the digital currency market, all while my home country considers implementing new regulations for cryptos.
The chairman of Turkey’s governing party, Abdullah Güler, has put forth a proposal for a new law aimed at establishing regulatory structures for crypto service providers. According to this suggested legislation, the Capital Markets Board (CMB) would be granted expanded authority to monitor the crypto industry.
The proposed legislation includes provisions for regulating crypto businesses in order to enhance the country’s adherence to global guidelines concerning crypto assets.
As a researcher, I would describe it this way: I anticipate that the implementation of this measure will help address the concerns raised by the Financial Action Task Force (FATF), potentially leading to their removal of Pakistan from their “grey list.” Since 2021, Pakistan has been on this list due to allegations regarding inadequate progress in implementing anti-money laundering and countering terrorist financing regulations.
According to crypto.news’ previous report, Turkey’s Finance Minister Mehmet Şimşek disclosed that the government is developing a tax system for income derived from cryptocurrency investments. This means that Turks will be required to pay taxes on their cryptocurrency gains.
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2024-06-13 14:44