Turkey prohibits the use of cryptocurrencies for payments
Turkey prohibits the use of cryptocurrencies for payments

The Central Bank of Turkey (CBRT) prohibits the use of crypto assets and cryptocurrencies to purchase goods and services on the grounds that these transactions involve potentially irreparable harm and significant risks.

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

The bank added: Payment service providers cannot use crypto assets directly or indirectly to develop business models to provide payment services and issue electronic funds, and they cannot provide services related to these business models.

As investors hope to take advantage of the bitcoin rally and find a way to prevent inflation, the growing boom of the Turkish cryptocurrency market has accelerated recently.

The weakening of the Turkish lira and inflationary pressures also increased the demand for cryptocurrencies.

The bank issued a statement explaining the reasons for the ban: These assets are not subject to any regulatory mechanism, regulator or regulatory body, and their market value is very volatile, and due to anonymity, they can be used in illegal activities without his permission. The wallet can be stolen or used illegally and the transaction cannot be canceled.

“Recently, initiatives have been taken to use these assets for payments,” he added. Due to the factors mentioned above, their use of payment has caused non-refundable losses to all parties to the transaction, including those who could cause harm to people. Trust methods and tools. Currently used for payment.

Last week, the government issued a notice to cryptocurrency exchanges operating in the country asking users to provide information. Some people interpreted this as a step in regulating a digital currency tax.

This information indicates that the Treasury Department requested information such as the ID number and the property value for cryptocurrency in Turkish lira.

The ministry said in a statement: The financial intelligence services around the world are addressing money laundering from the proceeds of crime and financing terrorism.

Highlighting the widespread use of cryptocurrency for such crimes, the ministry said the Financial Crimes Investigation Commission (MASAK) could request information from the platforms to help prevent crimes and prosecute their perpetrators.

Turkey's annual inflation rate rose to more than 16% in March, and the law will go into effect on April 30th.

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