The Turkish Central Bank has banned payments using cryptocurrency

in #turkey22 days ago

The Central Bank of Turkey has banned the use of cryptocurrencies as a means of payment, according to the official government publication Resmî Gazete. The ban takes effect on April 30.

Among other things, payment service providers are prohibited from including digital assets in their commercial models "both directly and indirectly." The restrictions affect payments for goods and services, while it is still possible to trade cryptocurrencies within the framework of the law. They also do not apply to banks, meaning users will be able to transfer Turkish lira to exchanges from their accounts, but it will no longer be possible to do this through payment service providers, Cointelegraph notes.

The Central Bank justified its decision by the "irrevocability" of losses that citizens may incur when conducting digital currency transactions, as well as the significant risks inherent in them. Digital assets, according to the Central Bank, "are not subject to any regulation, control mechanisms or central regulatory authority."

Payment services are an important channel for moving funds using cryptocurrencies in Turkey. So, the Binance exchange during the expansion in the local market entered into cooperation with the payment service Papara, which processed fiat deposits for its customers. In the absence of alternative options, Turkish crypto traders will have to withdraw their funds from the exchanges within two weeks.

Recently, Turkey has seen a significant surge in interest in cryptocurrencies against the background of a sharp decline in the national currency. According to the analytical firm Chainalysis, Turkey ranks first in the use of cryptocurrencies in the Middle East region. "The Turkish lira has been extremely volatile in recent years, which has prompted some citizens to move some of their savings into cryptocurrencies," Chainalysis writes.