Turkey has instituted a ban on all cryptocurrency payments as its own fiat currency, the lira, is failing. The ban is said to begin in late April.
“Payment service providers may not develop business models in such a way that cryptographic assets are used directly or indirectly in the provision of payment services and the issuance of electronic money and may not provide any service related to such payment models. business “, according to the new regulations of the Central Bank of the Republic of Turkey (CBRT), according to MarketWatch,
The CBRT gave several reasons for the ban, which included the lack of mechanisms for “supervision” and “central authority regulation” for cryptocurrencies. The CBRT also cited the volatility of the cryptocurrency market, as well as the fact that many cryptocurrency transactions are irrevocable.
“It is considered that use in payments may cause non-recoverable losses for parts of transactions due to the factors mentioned above and include elements that may undermine confidence in the methods and instruments currently used in payments,” said the CBRT regulation. , by MarketWatch.
After months of economic recession, Turkish locals have decided to exchange their lira for bitcoin and other foreign currencies. According to LocalBitcoin’s volume of foot-to-foot bitcoin transactions that include the lira, in 2021 it has experienced significant BTC activity.
In addition, in March this year, the Nigerian central bank issued a reminder of the ban on financial services for the country’s cryptocurrency exchange operators. The reasons set out were also similar to those set out by the CBRT in this recent update.
While these bans can generate a large amount of FUD, which can be reflected in the price of Bitcoin, Bitcoin continues to be traded between peers and under the radar, as it did in its early days. With Bitcoin always surviving in situations like these, many Bitcoiners believe that Bitcoin cannot be totally banned.