Turkey has announced a new ban which will restrict cryptocurrency holders to make payments in cryptos. Payment providers are also prohibited from adding funds to digital wallets at cryptocurrency exchanges. The Central Bank of the Republic of Turkey has announced the ban to come in effect on April 30th.
The ban has excluded banks which means wire transfers from bank accounts can be used to deposit Turkish Lira on cryptocurrency exchanges but that process would entail additional fees and hassle. Payment providers can no longer provide deposit or withdrawal services to cryptocurrency exchanges, per the ban. Payment providers were widely used in the country especially with the rise in cryptocurrency adoption; however, with just a two-weeks deadline, users only have until April 30th to clear out their wallets.
The Turkish government has had been strict when it concerns the digital payment ecosystem in the country and the entrance – and increased acceptance – of cryptocurrencies has disrupted the payment ecosystem in a lot of country with regulators being clueless as to how to navigate through the crypto sphere. The harsh ban on cryptocurrencies is the government’s way of taking back control as regulations in the crypto market are cloudy.