The cryptocurrency world is full of new innovations, surprises, crisis and risks. More information about this world is always better than less. When people know the that various things are happening, even if it’s bad news, they can control their expectations and react accordingly. Keeping people in the dark only serves them negative emotions. We try to cover all the big news in cryptocurrency. Recapping the biggest news stories of the weekend. If you’ve missed the top stories of the weekend, this post offers a comprehensive look at the stories that made headlines.
A lot has happened in the cryptocurrency and blockchain world : Turkey most likely candidate for mass cryptocurrency adoption, The Reserve Bank of India frets about its crypto crackdown, BTI Claims $6 Billion Daily Cryptocurrency Volume is Fraud and much more. Here’s an overview of some of weekend’s most interesting news and articles.
According to a new survey by Statista, Turkey has the highest Cryptocurrency owners, followed by Romania and Poland. The country has the highest percentage of the population that has invested in the crypto market. This survey was based on the 15,000 individuals. A significant 18 percent of the country’s investors have purchased cryptocurrencies like Bitcoin and Ethereum in the past few years. The primary reason behind this is the sanctions imposed by US government on the Turkish economy earlier this year leading to the Lira, the national currency of Turkey, falling by more than 50 percent against the US dollar.
The sanctions were imposed excluding the region from the global banking system operated by SWIFT in Belgium. The current monetary controls imposed by the government are preventing the conversion of Turkish lira to other fiat currencies like the US dollar and due to that people, merchants and local businesses have been unable to cash out their holdings in lira. Also, Turkish merchants were losing out massively with their holdings in Lira due to the country’s conflict with the US. As the call for independent financial systems gets louder all over the world, crypto is rising above it all as an anti-censorship and decentralized financial network that will appeal to a larger group of consumers, thereby becoming a symbol for freedom, security, and hope for Turkish people.
The Reserve bank of India (RBI) is now anxious about the crypto crackdown. Previously, It had said in its annual report released on August 29 that there is a need to keep track of trade in virtual currencies turning opaque. According to RBI, developments on this front need to be monitored as some trading may shift from exchanges to peer-to-peer mode, which may also involve increased use of cash. Possibilities of migration of crypto exchange houses to dark pools/cash and to offshore locations, thus raising concerns on AML/CFT (anti-money laundering/combating the financing of terrorism) and taxation issues.
After this, the regulator started a crackdown on crypto trading platforms by directing all lenders to freeze the accounts of cryptocurrency exchanges and traders and close their relationships with them within three months on April 6. Despite this, the market has found ways around the regulatory hurdle by tweaking their operations to eliminate the use of bank accounts and it has migrated to the peer-to-peer platform and crypto-to-crypto business model to circumvent the ban.
The exchanges are now blaming the RBI and according to them that this situation could have been avoided by taking more prudent steps to understand the ecosystem and carefully regulate it instead of coming down heavily on it. The RBI’s stance on Cryptocurrencies has long been a mystery and because of this the community still does not have a clear picture. Yet, they are hopeful and have their eyes on the final supreme court hearing on Sept. 11 on the RBI ban.
According to BTI (The Blockchain Transparency Institute), $6 billion daily cryptocurrency volume is fraud. Institute has released a report which consists of the analysis of the top 130 exchanges and their outline user ratios. It investigated the user activity and traffic of the market’s most significant cryptocurrency exchanges. Researchers used a system of comparing available data (web traffic, engagement, and volume) from sources like Similar Web and statistics disclosed by exchanges. In its findings, 70% of cryptocurrency exchanges have inflated their trading by either a three-fold through blurred and ambiguous business. They also said that 67% of the daily volume being reported appeared to be wash trades made up by the exchanges.