Brief Summary on the BTC and the Bitcoin’s Legal Framework in Turkish Law System

Introduction

Crypto money is a digital currency generated by highly specialized computers through special software and coding. This production is carried out via crypto money mining.

Bitcoin

  • is the most common crypto currency.
  • is not affiliate with the official authority and any central bank
  • can be bought and sold in the currency of each country.
  • ‘s symbol is ฿.

is abbreviated as BTC.

Extraction Bitcoin is possible through installing system network and to securely protect it and to synchronize every user in the system. The system is not controlled from a single center. Bitcoin mining is becoming more difficult due to new users from all over the world are included in the system with more powerful computers. The system automatically adjusts the difficulty level itself to slow the release of a large number of Bitcoins to the market and thus the amount of Bitcoin per year is decreased. The value of Bitcoin depends on the supply and demand conditions in the market. In circulation limited amount of Bitcoin is available. For producing newest Bitcoin it needs a predetermined algorithm therefore when demand rate increases than supply, Bitcoin is increased in value.

For using Bitcoin It requires that creating an e-wallet which can be formed via various applications and websites. It is not necessary sharing private information for formed e-wallet and it can be created unlimited number. It can be spend/shopped Bitcoins which is bought or produced on the internet. Because of Bitcoin is anonymous, no one or any organization can shut down or freeze your account.

Bitcoin’s Legal Framework in Turkish Law System

Bitcoin, known as a virtual currency, which is not issued and guarantee by any governmental or private organization is not considered as electronic money due to its structure and operation in the scope of the Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions (the Code) No. 6493.

On November 25, 2013, the Banking Regulation and Supervision Agency (the Agency) announced a public announcement which including that Bitcoin is not scope of the Code and not considered as electronic money therefore it not possible it’s monitoring and supervising.

Conclusion

The digital currency and various new technologies that attracted attention of many individual investors due to their rapid rise in value become a risky market where rapid losses can be experienced. In respect of digital money’s structure notwithstanding any central bank and official authority and even if it transfer can be made without any intermediary service, when any occurrence loss due to any authority or party is not found it may arise big problems. For this reason, it must be considered all risks while planned investment/consumption of bitcoins and subcoins.

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