The Turkish lira reached an all-time high in early June, driven by inflation issues in Turkey since 2022. This has led to a significant market share increase, surpassing 70%, which has severely impacted the lira’s value. Divergent monetary policies and a record number of elections in 2024 have fueled this trend, according to Kaiko. In addition to the lira’s surge, Japan’s Yen hit a 30-year low against the US dollar, while the Mexican Peso dropped to its lowest level since October 2023.
On the other hand, the British pound (GBP) saw a rally, reaching its highest level in two years against the EUR. As a result, the purchasing power of these currencies has weakened. Binance’s recent regulatory obstacles have been identified by Kaiko as a contributing factor to the lira’s increased market share. This led to the platform delisting GBP and AUD trading pairs, with the market share transitioning to TRY, boosting its volume.
At the same time, Turkey is working on crypto regulations, with the proposed law aiming to enhance oversight of the crypto sector and introduce licensing measures for crypto firms. These measures are intended to align with international standards and address criticisms from the Financial Action Task Force (FATF), which has had Turkey on its “grey list” since 2021. Furthermore, the legislation is expected to enable the country to tax gains from investments in cryptocurrencies.