Turkish Lira Dominates Fiat Trading on Binance as Crypto Adoption Rises in Turkey
Summary:
In September, the Turkish Lira (TRY) was the most traded fiat pair on crypto exchange Binance, driven by a surge in crypto investors in Turkey. Despite risk considerations, factors such as profitability, ease of tracking, and low transaction fees have heightened Turkey's engagement with crypto. Over the past three years, crypto adoption in Turkey has risen from 16% to 40%. Amid this growth, the nation is drafting fresh crypto regulations in a bid to be removed from the Financial Action Task Force's "gray list.
In September, the Turkish Lira (TRY) emerged as the primary fiat trading pair on Binance, as reported by research from the cryptocurrency exchange. Despite being the global fourth largest crypto market by transaction volume, following the United States, India, and the United Kingdom, the Turkish Lira accounted for three-quarters of all fiat volume in early September. This surge in TRY trading pairs is attributable to a recent influx of cryptocurrency investors in Turkey. Binance research indicates that 27% of respondents began investing in crypto within the previous year, of which 8% stepped into the field in the past half year.
A Binance survey showed that most respondents have up to $175 (5,000 TRY) held in cryptocurrencies, and have a preference for substantial investments in real estate. The lure of profitability is one of the biggest motivators for Turkish interest in cryptocurrency, along with easy monitoring, no minimum investment levels, and reduced transaction costs. However, the inherent risks involved with crypto deters some Turkish investors.
In the previous three years, crypto acceptance in Turkey has risen from 16% to 40%. According to Chainalysis’ Global Crypto Adoption Index for 2023, Turkey ranks 12th. In the aftermath of the 2023 earthquake, Turkey received crypto-based humanitarian aid.
However, despite the relentless rise in crypto adoption in Turkey, the nation is reportedly formulating new rules to regulate crypto assets. This move is intended to persuade the Financial Action Task Force (FATF) to delist Turkey from its "gray list." In 2021, when Turkey was added to the FATF's gray list, former Turkish Finance Minister Mehmet Simsek clarified that all but one of the 40 standards set by the watchdog had been met by the country. The unmet standard was related to crypto dealings.
Simsek had proposed to present a cryptocurrency law to parliament with the intention to facilitate Turkey's exit from the gray list. However, he did not detail the legal amendments that would be required.
Published At
11/10/2023 8:39:20 AM
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