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Turkey bans the use of cryptocurrencies for payments

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a ban The Central Bank of Turkey (CBRT) used cryptocurrencies and crypto assets to purchase goods and services, citing potential irreparable harms and significant risks in such transactions.

In the legislation published in the Official Gazette, the Turkish Central Bank said: Cryptocurrencies and other digital assets based on distributed ledger technology cannot be used, directly or indirectly, as a payment tool.

The bank added: Payment service providers will not be able to develop business models in a way that uses encrypted assets directly or indirectly in providing payment services and issuing electronic funds, and they will not be able to provide any services related to these business models.

The growing boom in the cryptocurrency market in Turkey has gained more pace recently, as investors hope to gain from the rise of Bitcoin and provide protection against inflation.

The weakness of the Turkish lira and inflation pressures also increased the demand for the cryptocurrency.

The bank said in a statement explaining the reason for the ban: These assets are not subject to any regulatory mechanisms and supervision nor central regulatory authority, and their market values ​​can be highly volatile and can be used in illegal business due to their anonymity and portfolios can be stolen or used illegally without permission from their holders and transactions are not Can be canceled.

He added: Some initiatives have recently emerged regarding the use of these assets in payments, and their use in payments causes non-refundable losses to the parties to transactions due to the factors mentioned above and includes elements that may undermine confidence in the methods and tools currently used in payments.

Last week, the government sent a notice to cryptocurrency exchanges operating in the country requesting user information, a development that some have interpreted as a step linked to digital currency tax regulations.

The information indicated that the Ministry of Treasury and Finance requested information, such as: the identification number and ownership of the value of the cryptocurrency in Turkish lira.

In a statement, the ministry said: “Financial intelligence units around the world are combating laundering of criminal proceeds and financing terrorism.

The ministry stressed the extensive use of cryptocurrencies in such crimes, and indicated that the Financial Crimes Investigation Board (MASAK) can request information from the platforms to prevent and track crimes.

Annual inflation in Turkey jumped to more than 16 percent in March. The legislation will take effect on April 30th.

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