The Central Bank of the Republic of Turkey has prepared a report on the cryptocurrency market, Bloomberg has learned. The watchdog stressed that cryptocurrencies have no intrinsic value and their value is very volatile. For these reasons, the report states that cryptocurrencies cannot be used as a medium of exchange. The report also lists the risks associated with cryptocurrencies.
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For example, the regulator is concerned that cryptocurrencies are not subject to any regulatory and supervisory mechanism, and hence the absence of a central addressee leads to a lack of control and supervision. The regulator has also expressed concern about the anonymous blockchain structure. According to the central bank, the anonymity-oriented technology facilitates the use in illegal activities.
However, the most notable point was the impact on the environment. According to the central, cryptocurrency mining is increasing global warming. However, the regulator did not explain exactly how mining affects the warming.
In April, Turkey announced its plans for a centralized custodian bank so that the authorities could eliminate the risk of insolvency in the cryptocurrency space following the recent collapse of two Turkish exchanges. The authorities are also studying the possibility of setting capital thresholds for trading platforms as well as imposing training requirements for their leaders.
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