The circle of state controls and the implementation of a regulatory framework in the cryptocurrency market seems to be tightening more and more, as foreign analysts and market participants estimate.
The messages are already more than clear and in fact at the highest possible level in this direction. Both US Treasury Secretary Janet Glenn and European Central Bank chief Christine Lagarde have joined forces with other high-ranking officials to raise concerns about the possible use of bitcoin for money laundering and other illegal activities.
“Everything shows that we are leading to the implementation of measures and a regulatory framework for the operation of the market,” Jesse Powell, CEO of crypto trading platform Kraken, told CNBC. “And the moment could not be more decisive since the most popular cryptocurrency of all, Bitcoin, has been leading the frantic rally in the international markets for a long time, with the records breaking one after the other”.
Turkey has announced a ban on cryptocurrencies
Characteristic is the recent decision of the Turkish government, according to which in Turkey, people will be able to trade cryptocurrencies until the end of April, as the Central Bank of the country will ban their use for payments.
In a statement, the Bank justified the decision, citing the anonymity behind the crypto-transactions and the risk it poses for “irreparable losses” to all users.
According to an announcement published in the Government newspaper, last Friday, companies will no longer be able to make payments and electronic money transfers using cryptocurrency platforms.
The absence of regulations and supervisory mechanisms, the lack of control by a central bank or other central authority, the extremely large fluctuations recorded in the market and the possibility of “criminal activity”, are the central positions of the Bank that explain the ban.
It is recalled that in March, the Turkish Ministry of Finance issued a statement, according to which, it shared the “global concern” for the rapid growth of cryptocurrencies.
In fact, the ministry was working with the Central Bank, the Banking Regulator and the SEC to create a new plan to enforce regulations regarding the cryptocurrency market.
This type of buying and selling has increased considerably in Turkey in the last year. According to Sikayetvar data, cryptocurrencies increased by 8.616% in the Turkish market in February 2021, compared to the same month last year.
The volume of cryptocurrency transactions almost tripled to $2.8 billion between March 20-24, from about $1 billion in the same period last year.
Bitcoin’s price fell by 15%
A day after the announcement by the Turkish Central Bank, the most popular cryptocurrency Bitcoin, recorded losses of up to 15%, falling to $51.700.
At the moment, however, bitcoin has reduced losses to 8.23% and is trading at $55,570, while Ethereum also recorded losses of almost 18%, before reducing them to 9%.