The Central Bank of the Republic of Turkey (CBRT) will ban the use of crypto assets in payments from April 30 , according to the Official Gazette early Friday as they entail significant risks for the parties to the transactions. Accordingly, payment and electronic money institutions will not be able to mediate platforms that offer trading, custody, transfer, or issuance services for crypto assets besides mediating fund transfers from them. The new regulation does not cover crypto transactions on exchanges or for investing in the new asset class. These transactions would not be qualified as “payment,” indicating that it is still legal.
Cryptocurrency trading has skyrocketed in Turkey in recent months, as investors hope to hedge against inflation. In March, inflation reached 16.2%, the highest reading in six months, exceeding the central bank's target of 5%. Unemployment remains high at 13.4%, leading to a prolonged economic turmoil. According to blockchain analysis company Chainalysis, trading volumes in Turkey soared right after the former central bank head was fired. Between the start of February and late March, trading volumes amounted to 218 billion lira, up from over 7 billion lira in the same period in 2020.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Bitcoin price fell again below $60,000 after the Turkish central bank has decided to ban crypto-related payments. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
