Turkey About To Ban Cryptocurrency Payments?

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The Central Bank of Turkey is also at the edge of banning cryptocurrency payments. The crypto providers will be prohibited from offering the fiat-to-crypto onramps for all the cryptocurrency exchanges. 

As per the Central Bank of the Republic of Turkey’s announcement made on Friday, the ban on cryptocurrency payments will be effective from the 30th of April, 2021. This will render any crypto payments partnerships and solutions illegal.

The bank stated, “any direct or indirect usage of crypto assets in payment services and electronic money issuance will be forbidden”.

The banks are excluded from the regulation. This means that the users will still be able to deposit the Turkish lira on the different crypto exchanges utilizing the wire transfers from their bank accounts. However, the payment providers will be unable to provide the deposit or withdrawal services for the cryptocurrency exchanges

The digital wallets and the cryptocurrency payments providers are broadly in use in Turkey for transferring fiat currency to the crypto exchanges and vice versa. One of the major global cryptocurrency exchanges, Binance, has partnered with the local Cryptocurrency payments provider “Papara”. This was when Papara first entered into the Turkish market for providing a lira onramp against various and different cryptocurrencies. 

This new regulation states that the users still have just two weeks for clearing their balances in case they exclusively use the payment providers as fiat-to-cryptocurrency gateways. 

Historically, the Turkish government has always possessed a rigid grip on the payments ecosystem. Back in 2016, Turkey had banned the major global payment provider, PayPal, in the country.

In recent months, it seems that cryptocurrency regulation is a raging topic. In the past month, the Turkish Ministry of Treasury and Finance had announced that they are currently monitoring the cryptocurrency ecosystem. They are working with the Banking Regulation and Supervision Agency, the Central Bank and Capital Markets Board for regulating crypto.

Source: CoinTelegraph


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