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The Central Bank of the Republic of Turkey has announced it is banning the use of cryptocurrency for payments throughout the country.
The trading of cryptocurrencies, however, appears to be unaffected by the regulation. The ban, which is set to go into effect on 30 April 2021, follows a similar move by Morocco and a possible coming prohibition in India.
Banning cryptocurrency payments throughout the country comes as the Turkish lira (TRY) has faced significant outside selling pressure. The currency plunged in foreign exchange markets on the back of the president’s firing of the nation’s top central banker Naci Agbal in March 2021.
Many have turned to cryptocurrency as an alternative method of payment to circumvent the issues plaguing the lira. The regulation specifically targets payments using cryptocurrency for goods and services as well as targeting the provision of payment services and electronic money issuance.
Reasons given for the ban range from the government’s inability to effectively monitor and control, excessive market volatility and use in illegal activity. The government also cited wallets as being vulnerable to theft while transactions that were irrevocable were a cause for concern.
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