The government entity reported that the measure would begin its application from April 30, 2021. The decision appears a few days after the removal of the president of the Central Bank of Turkey.
During the currency crisis that Turkey has been facing for a few months, the Central Bank of that country chose to forbid bitcoins (BTC).
The regulation, which has six articles, appeared in the Official Gazette of the issuing entity this Friday, April 16, under No. 31456. The document prohibits the use of cryptocurrencies and digital assets to make payments for purchases and services.
The standard says in Article 1 that its primary purpose is to detect the procedures and principles relating to the non-use of cryptographic assets in payments, the provision of payment services, and the direct or indirect use of cryptographic assets issuance of money.
The statement also includes the prohibition of bitcoin use in the payment performance of electronic money institutions, which could serve as the mediator in the platforms that provide trading, storage, transfer, or export services related to cryptographic assets or transfer funds.
The ban adds that recently the President of that nation, Recep Tayyip Erdogan, removed the Central Bank of Turkey President, Naci Agbal, who was only a few months in office, raising the key interest rate by two points, up to 19%. This action is an attempt to control the high inflation that is currently affecting that country.
Cryptocurrency Adoption in Turkey Could Decline
The government’s announcement could stall the cryptocurrency market in Turkey, which has gained momentum in recent months as a host of institutional investors joined the global bitcoin comeback.
The pioneering cryptocurrency gained popularity among Turks amid an economic crisis sparked by the devaluation of the local currency – the lire. According to the study shared by this media outlet, already in 2019, one in five Turks owned or had ever used cryptocurrencies.
More recently, the country’s citizens have been more interested in cryptocurrencies as a store of value. In March 2021, bitcoin was trading above its market value in that nation, while the local inflation index reached 16% in the third month of the current year.
The Central Bank’s decision came to effect when many businesses in the country were also beginning to adjust their payments with cryptocurrencies. The firm Royal Motors, which distributes Rolls-Royce cars in Turkey, became the first company of its kind in that nation to accept payments with bitcoins.
Some Economies Intend to Create Effective Regulations on Bitcoin
Although regulations on cryptocurrencies are not standard, they face a series of controls that want to apply their effects in many countries, as noted by Dan Larime, after announcing his decision to resign as CTO of Block. one.
Turkey is not the only land that forbids the use of cryptocurrencies. Countries like Nigeria banned BTC transactions last February. For its part, India circulated a bill with similar ban plans the previous year, which advanced to a regulatory statement this year.
By: Jenson Nuñez