Recently, the population of Turkey began to turn heavily to cryptocurrency payments due to the country’s struggles with the traditional economy. However, the country’s Central Bank appears to have disliked this turn of events as it made a move to ban crypto users from using their assets to make payments.
Not only that, but the bank will also ban payment providers from adding funds to their digital wallets on crypto exchanges.
No more crypto payments in Turkey
Looking for quick news, tips, and market analysis? Sign up for the Invezz newsletter today.
The country’s central bank announced today, Friday, April 16, that the ban will take effect in two weeks, on April 30. From then on, all crypto payment solutions and partnerships will become illegal across the country.
The bank pointed out that any direct or even indirect case of the use of digital currencies as payment services and / or electronic money issuance will be totally prohibited from that moment on.
Interestingly, the banks themselves are excluded from this regulation. In other words, Turkish users can still deposit fiat money on digital currency exchanges via bank transfers and use other methods. However, payment providers will not be able to provide deposits or withdrawals for crypto exchanges.
The move will seriously affect the local crypto scene, particularly as payment providers and digital wallets are widely used across the country to transfer funds to and from crypto exchanges. In fact, Binance, the world’s largest centralized crypto exchange by volume, partnered with Turkey’s local payment provider Papara when it first arrived in the country to make it easier for locals to buy cryptocurrencies directly with lira.
Tip: Looking for an app to invest wisely? Trade safely by signing up for our preferred option, eToro: visit & create an account
The government moves against crytpo
As things stand now, the country’s crypto community will have two weeks to settle their balances if they use only available payment providers to buy digital currencies with fiat money. But the move is not that surprising. In the past, Turkey also banned PayPal and always kept a strict control on payments. Not to mention, its Ministry of Finance and Finance recently announced that the authorities are closely monitoring the crypto ecosystem.
Given that crypto is a hot topic in the country and Turkey’s obsession with keeping the payments ecosystem in check, the crypto industry, which provides much more freedom and privacy when it comes to payments than any other method of payment, it was meant to be a target eventually. .