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Is Turkey s First Regulation On Crypto-Assets Just A Beginning? - Technology

To print this article, all you need is to be registered or login on Mondaq.com. Although it remains unclear whether cryptocurrencies will replace traditional money in the near future or ever, they have become a global phenomenon lately. Likewise, the economic turbulence in Turkey has led to a surge in swapping the local currency for cryptocurrencies despite their price volatility. According to a recent survey, Turkey has the fourth-highest rate of cryptocurrency use out of 74 countries Background of Recent Developments With the more and more growing popularity of the crypto market in Turkey, the government s concerns about using cryptocurrencies for illegitimate activities such as money

Turkey to ban cryptocurrency payments

4/16/2021 10:55:23 AM GMT Turkey s central bank is also banning payment providers from offering fiat-to-crypto on ramps for cryptocurrency exchanges. A new ban in Turkey will prohibit crypto holders from using their digital assets for payments, in addition to preventing payment providers from providing fiat on ramps for crypto exchanges. According to a Friday announcement by the Central Bank of the Republic of Turkey, the ban will come into effect on April 30, rendering any crypto payments solutions and partnerships illegal. The bank stated, “any direct or indirect usage of crypto assets in payment services and electronic money issuance” will be forbidden. While banks are excluded from the regulation, which means users can still deposit Turkish lira on crypto exchanges using wire transfers from their bank accounts, payment providers will be unable to provide deposit or withdrawal services for crypto exchanges.

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