Turkey Bans The Use of Cryptocurrencies for Payments

The central bank of Turkey has banned the use of cryptocurrencies and cryptoassets for the purchase of goods and services, citing "irreparable" possible damage and significant risks in such transactions.

The day before, in the official newspaper of the Turkish government Resmi Gazetethe, the Central Bank of Turkey (CBRT) stated that cryptocurrencies and other similar digital assets based on distributed ledger technology cannot be used directly or indirectly as a means of payment. The central bank said in a statement that cryptoassets are not subject to any regulatory and supervisory mechanisms or a central regulatory body.

The ban on cryptocurrency payments across the country comes as the Turkish lira faces significant outside selling pressure. According to American researcher Chainalysis, the volume of cryptocurrency trading in Turkey from early February to March 24 reached 218 bln lira, up from just over 7 bln lira in the same period last year.

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