Central Bank of Turkey Prohibits Cryptocurrency Payments
Turkey intends to implement a blanket ban on crypto payments, and also prohibit payment processors from offering fiat onramps for cryptocurrency exchanges. As per a Friday announcement by the Central Bank of the Republic of Turkey, the prohibition will take effect on April 30, making any cryptocurrency payments solutions and collaborations unlawful.
Specifically, the bank announced that “any direct or indirect usage of crypto assets in payment services and electronic money issuance” is prohibited. Banks do not fall under the rule, implying that users will still be able to deposit Turkish lira on cryptocurrency exchanges through wire transfers from their bank, but payment processors will not be able to offer deposit or withdrawal services for cryptocurrency exchanges.
Payment processors and cryptocurrency wallets are primarily utilized in Turkey to move fiat funds to cryptocurrency exchanges and vice-versa. Top global exchange Binance collaborated with domestic payment provider Papara when they initially stepped into the Turkish market to offer a lira onramp for various cryptos.
The latest regulation implies that users have only a fortnight to wipe their slate clean in case they utilize payment processors as fiat-to-crypto channels. Past history indicates that the Turkish government always had a total control over the payment environment. Five years back, Turkey prohibited top international payment provider PayPal in the country.
In recent times, cryptocurrency regulation is an important subject for Turkey. In March, the Turkish Ministry of Treasury and Finance stated that they are tracking the cryptocurrency ecosystem and work with the Capital Markets Board, Central Bank, Banking Regulation and Supervision Agency to regulate cryptocurrency.