Turkey's central bank bans cryptocurrency payments

From April 30, the Central Bank of the Republic of Turkey introduces a complete ban on the use of cryptocurrency for payment transactions.

The regulator said in a statement that suppliersgoods, works and services cannot apply business models in which crypto assets are directly or indirectly involved in the calculations. These measures apply to all companies without exception.

Türkiye decided to introduce the ban amid a worsening currency crisis in the country. According to the Central Bank, the use of cryptocurrencies is associated with serious risks due to the instability of their exchange rate,the impossibility of canceling transactions, the lack of regulation by the central authorities and anonymity that attracts the shadow sector of the economy.

The central bank believes that all of these factors can make crypto payments unprofitable for all parties to the transaction.

Despite the ban on the use of cryptocurrency forpayment, the Turks will still be able to trade and store it as a store of value. However, due to restrictions, exchanges may have difficulties exchanging digital assets for fiat.

Turkey's current policy on this issue is at odds with the views of the European Union, which intends to integrate crypto assets into its financial system by 2024.

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