The Central Bank of the Republic of Turkey is banning the use of cryptocurrency for payments throughout the country, becoming the latest country to seek to impose limits on it.
The price of bitcoin fell and is now at $60,868.91, down 2.69% in the last 24 hours.
According to a report by the official newspaper of the Turkish government and a press release by the central bank on Friday local time, Turkey has introduced the “Regulation on the Disuse of Crypto Assets in Payments.” The trading of cryptocurrencies appears to be unaffected by the regulation.
Banning cryptocurrency payments throughout the country comes as the Turkish lira has faced significant outside selling pressure. The currency plunged in foreign exchange markets following President Recep Tayyip Erdogan’s firing of the nation’s top central banker Naci Agbal in March. Many have turned to cryptocurrency as an alternative method of payment in order 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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.