Cryptocurrency ban enters into force in Turkey

The country's authorities have stopped the circulation of digital money both directly by counterparties and through intermediaries.Central Bank of Turkeystressed that the new rules will be in effect until the emergence of balanced industry regulation.

On April 30, a ban onthe use of cryptocurrencies as a means of payment for payments for goods and services in the country. Local marketplaces have halted operations to exchange Turkish Lira for digital money. Thus, the country's authorities stopped the circulation of cryptocurrencies both directly between counterparties and through intermediaries.

It became known that the Central Bank imposed a ban 16April. Then the representative of the financial regulator explained that the use of digital money in payments can lead to "irreparable losses." Also, the country's authorities believe that payments in cryptocurrency can undermine confidence in the methods and tools that are used in payments.

According to the new rules, registered andlicensed Turkish financial platforms, services and payment systems are deprived of the opportunity to provide any services for settlement transactions with them or create new business models for transferring funds between wallets, buying, storing or selling cryptocurrency for fiat money.

Chairman of the Turkish Central BankRepublic of Shahap Kavdzhioglu stressed that the new rules do not prohibit the entire cryptocurrency ecosystem. This is necessary in order to create a balanced system for the storage and settlement of digital money. Until its appearance, it is better to avoid transactions with cryptocurrency, the head of the financial regulator is sure.

Earlier it became known that the Turkish governmentwill create a state cryptocurrency vault to reduce the risks associated with investments of Turkish citizens in digital assets. Officials want to establish capital requirements for cryptocurrency exchanges and the necessary qualifications for managers of such sites.

In April, two of them suddenly stopped working at once.Turkish crypto exchanges - Thodex and Vebitcoin. The head of the first is put on the international wanted list and is suspected of stealing $ 2 billion. The accounts of the second site are frozen by the Financial Crime Investigation Council (MASAK).

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