Bitcoin: An Innovation Or Tool For Overriding Regulations?

"Virtual currencies continue to hit the headlines and are enjoying increasing popularity" wrote the European Banking Authority in the warning they published for consumers on 12 December 2013. In its announcement, the European Banking Authority also indicates that a virtual currency is often defined as a form of unregulated digital money that is not issued or guaranteed by a Central Bank and that can act as means of payment.

Virtual currency transactions do not involve an intermediary bank and lack supervision of governmental authorities on the transactions paid by using virtual currencies. Since 2009, the virtual currency, "Bitcoin", is widely discussed in many jurisdictions as well as in Turkey. The applicable legislation in Turkey does not govern the "Bitcoin" and in particular the Banking Regulatory and Supervision Agency, ("BRSA"), which is the banking regulatory authority for Turkey warns the public on the losses that can be incurred due to such an unregulated