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Turkey to Ban the Use of Crypto for Payments; Trading Unaffected - CoinDesk

www.coindesk.com 16 April 2021 05:52, UTC
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The Central Bank of the Republic of Turkey has banned the use of cryptocurrency for payments throughout the country.

According to a report by the official newspaper of the Turkish government and a press release by the central bank on Friday, Turkey has introduced the “Regulation on the Disuse of Crypto Assets in Payments.” The trading of cryptocurrencies appears to be unaffected by the regulation.

Banning cryptocurrency payments throughout the country comes as the Turkish lira has faced significant outside selling pressure. The currency plunged in foreign exchange markets on the back of President Recep Tayyip Erdogan’s firing of the nation’s top central banker Naci Agbal in March. Many have turned to cryptocurrency as an alternative method of payment in order to circumvent the issues plaguing the lira.

The regulation, which goes into effect on April 30, specifically targets payments using cryptocurrency for goods and services as well as targeting the “provision of payment services and electronic money issuance.”

Reasons given for the ban range from the government’s inability to effectively monitor and control, excessive market volatility and use in illegal activity. The government also cited wallets as being vulnerable to theft while transactions that were irrevocable were a cause for concern.

See also: Crypto Is Not Regulated in Turkey, and It’s Thriving

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