Turkey Bans Crypto Payments
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April 16, 2021

Turkey's central bank has just banned the use of cryptos to pay for goods and services, Reuters has reported. The prohibition will come into effect on April 30.

According to the country's central bank, digital assets are not subject to control and supervision, which is the reason why they pose security risks and can generate potential losses. The regulator has informed through a statement:

"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."

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The ban does not yet apply to crypto trading on exchanges. According to a representative of the regulator, the use of digital money in payments may generate "non-recoverable" losses for transaction participants. In addition, the central bank has said crypto payments could undermine confidence in the methods and tools used in payments.

Cryptocurrencies are very popular in Turkey due to the weakening of the Turkish lira and inflation, which in March exceeded 16%.

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