In Turkey, which is the 4th country with the most cryptocurrency users in the world, the agenda on this issue is quite intense. There is a lot to talk about when it comes to Thodex and VeBitcoin scandals, Digital Currency regulation, which is expected to include cryptocurrency tax. European Union Licensed crypto money exchange Coinmetro evaluated the developments in Turkey.
The Digital Money Law, on which more than one institution in Turkey continues to work simultaneously, will bring along the most comprehensive regulation ever made. Thodex and VeBitcoin profits after the first details of the law appeared, Caused anxiety in investors in Turkey.
Now even for the most reliable cryptocurrencies or exchanges on the market ‘Is it safe?’ the question we hear more. So is there really a security weakness, what will the laws and regulations cover, and most importantly, what should investors think after these developments? EU licensed cryptocurrency exchange, headquartered in Estonia Coinmetro evaluated the issue.
Why did VeBitcoin scandals occur with Thodex?
There are many crypto currency exchanges in Turkey and in the world that mediate the purchase and sale of crypto money. Thodex and VeBitcoin were just two of them. In fact, Thodex was the exchange that established Turkey’s first Bitcoin ATM. VeBitcoin, on the other hand, was a small stock exchange that appeared later and appealed to relatively few people. Coinmetro officials, Potential causes of the VeBitcoin scandal with Thodex They made the following statement about.
“Brokerage firms such as Thodex and VeBitcoin keep the cryptocurrencies that investors buy in their data centers, and on the other hand, they keep the investors’ physical money in their own bank accounts. In other words, all physical and cryptocurrencies belong to the company. Users also make transactions on the cryptocurrencies belonging to the company with the physical money they send to the company. The fact that the company is the only party that can control both physical and cryptocurrencies has invited the scandal.
Are there any security weaknesses in cryptocurrencies?
The vast majority of investors are concerned about the entire cryptocurrency ecosystem after Thodex and similar cases. These concerns go back to the discussion of whether there is a security weakness in cryptocurrencies in general. However, according to Coinmetro, the issue of reliability of cryptocurrencies, under two separate headings in itself should be examined:
“Reliability of cryptocurrencies; In order for the system to function within itself, cryptocurrencies should be evaluated separately for people to store. Transactions with cryptocurrencies are very safe as they take place on the Blockchain network. However, this situation does not tolerate the mistakes you will make when you own crypto money. For this reason, it is up to you to ensure the reliability of the wallet. Due to the fact that crypto money does not have any center, the capital and investment power behind the companies to be used as intermediaries should also be considered. ”
Coinmetro is also used by cryptocurrency investors. prefer the cold wallet method also recommends. Thanks to this method, the balance of crypto money can be safely stored in an environment that is not connected to the internet.
Regulations made or anticipated to be made in Turkey:
Some steps have begun to be taken in crypto money in Turkey and it has been signaled that more will be taken. It is predicted that a tight control will come, especially after the recent scandals. The most concrete step that consolidates the foundations of this prediction, Entering into force on April 30, 2021 and the CBRT’s decision to suspend the use of cryptocurrencies in payment transactions.
Emphasizing that there are many countries that apply taxation for crypto currencies, Coinmetro, Transactions such as “buying, selling and transferring” interprets it as a sign of the tax future.
There is no relationship between the decline in Bitcoin and the regulations in Turkey:
With some regulations made in Turkey and said to be done, a sharp decline in Bitcoin coincided with the same time. Although this situation causes the decline in Bitcoin to be associated with the regulations made by Turkey, the reason behind it is very different. Power outage in China’s Xinjiang region, It was one of the main reasons for the sharp decline in Bitcoin.
Bitcoin mining for Bitcoin is dependent on electrical energy. Bitcoin mining is done intensively in the Xinjiang region of China. A large number of Bitcoin mining centers, which were disabled due to the power outage, caused a slowdown in the Bitcoin network. Therefore, Bitcoin’s infrastructure The first requirement of blockchain technology The requirement of “recording and verifying transactions on the chain” could not be fulfilled.
Coinmetro officials were concerned that Bitcoin owners, who were aware of the power outage in China, started selling their Bitcoins and This situation also caused a sharp fall. states. Stating that this situation is considered as a weakness by the investors, Coinmetro reminds that the market has recovered again after the interruption.
What should crypto money investors do in such an agenda?
After some scandals and developments in Turkey, domestic investors started to prefer companies abroad. At this point, in order not to encounter similar problems again, attention should be paid to the fact that the preferred company has a strong capital and investment support.
Those who want to trade on foreign stock exchanges, due to their contribution to this content and meeting the official conditions CoinmetroWe recommend. Operating under the European Union License, Coinmetro currently has an infrastructure that is compatible with the legal regulations that are established in Turkey. In addition, Coinmetro underlines that all investments must be made on a cold wallet.