Under the title "Turkey Launches War on Cryptocurrencies: Ban on Their Use as a Means of Payment," the website العربية.نت published an article about the Turkish central bank's prohibition on the use of cryptocurrencies and digital assets for purchasing goods and services. The bank noted potential "irreparable" damages and significant risks associated with such transactions.
In the legislation published in the official gazette early Friday, the Turkish central bank stated that cryptocurrencies and other digital assets based on distributed ledger technology cannot be used, directly or indirectly, as a payment tool. The bank stated: "Payment service providers will not be able to develop business models in a way that directly or indirectly utilizes cryptocurrencies to provide payment services and issue electronic money, nor will they be able to offer any related services tied to these business models."
The growing market for digital assets in Turkey has gained momentum recently, as investors hope to profit from Bitcoin's rise and hedge against inflation. The annual inflation rate in Turkey exceeded 16% in March, driven by the weakening Turkish lira and inflationary pressures, which boosted demand for cryptocurrencies.
In a statement explaining the rationale behind the ban, the bank said these assets "are not subject to any regulatory or supervisory mechanisms nor to a central regulatory authority."
Last week, Turkish authorities requested information regarding users from trading platforms. The new legislation will take effect on April 30, and Bitcoin prices fell 2.59% to $61,757 by 05:57 GMT.
