The Central Bank of Turkey banned the use of cryptocurrencies and crypto-assets to purchase goods and services, citing “irrepairable” possible damages and significant risk in such transactions. It is becoming the latest country to seek to impose a limit on it.
As per the report by the official Gazette of the Turkish Government and a press release by the central bank on Friday local time, Turkey has presented the “Regulation regarding the disuse of crypto assets in payment.” The trading of cryptocurrencies appears to be unaffected by the regulation.
In recent months Turkey’s growing crypto market has gained momentum. Which has seen inflation weaken the value of the Turkish Lira. The Turkish lira hit near historic lows last month. Banning cryptocurrency payment throughout the country comes as the Turkish lira has faced significant outside selling pressure.
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The statement given by the Central bank crypto assets were – “Neither subject to any regulation and supervision mechanisms nor a central regulatory authority”, among other security risks. “Payment service providers will not be able to develop business models in a way that crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance, and will not be able to provide any services related to such business models,” Bank added. The regulations will come into effect on 30 April.
The government has given a reason for the ban that inability to effectively monitor and control excessive market volatility and use in illegal activity.
