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Turkish Ban on Crypto Assets Triggers a Downfall in Bitcoin Price

The central bank of Turkey bans the utilization of all sorts of crypto assets. Therefore, cryptocurrencies can no longer purchase any services & goods. It denotes possible ‘irreparable’ damage with severe transaction risks. Bitcoin market value went down by 3% to $61,490 following its banishment in Turkey.

“Turkey bans all crypto-assets for payment” (Source – Crowdfundinsider.com)

The Official Gazette published legislation regarding the CBRT’s (Central Bank of the Republic of Turkey) decision. The regulation tamed all cryptocurrencies along with similar digital assets based on ledger technology. It strictly includes all direct or indirect payment methods using virtual currency.

“CBRT points out some risks associated with the digital currency” (Credit – Turkishminute.com)

The declaration also forbids any company to use a crypto platform. It includes handling payments or EFT (Electronic Fund Transfer) from pending transactions. And the legislation will go into effect from April 30, 2021. But Bitcoin went down to $61,490 against the US Dollar at 7:54 am GMT right after the ban.

The central bank made a statement to defend its action against crypto assets. It encloses multiple facts to possess ‘significant risks’ for centralized finance. Digital tokens to feature lack of regulation/supervision, criminal activity potential & extreme market volatility – the statement said.

Turkish bitcoin market keeps growing at a booming pace in recent times. In fact, Turkish Google searches on crypto hit a record-high mark in weeks.

Many Turkish investors already joined the global bitcoin rise to gain benefits. 

National inflation in turkey kept increasing for several months. And it was 16% in March. Additional inflation rates put pressure on the crypto market because of constantly lowering product value. And Turkish clients to use crypto hoped to see improvement with digital currency.

Anadolu University SODIGEM Director Yusuf Levent Şahin talked on the issue. He believes the regulation is likely to protect small investors with ease of taxation. He also anticipates a decrease in cryptocurrency loss.

But several government agencies already expressed serious concern about cryptocurrencies. Turkish authorities demanded user trading information from crypto platforms last week. It worried the users to link tax regulations to the digital currency.

Turkey currently holds third in the world & first in Europe on crypto uses. Therefore, the decision is sure to concern many cryptocurrency Turkish investors.

Suez Halder

Suez Halder

Suez Halder is an experienced cryptocurrency & blockchain reporter and analyst who covers different aspects of online trading on 'Social Trading 101'. Taking direct part in crypto trading from 2017, he specializes in evaluating the cryptocurrency & blockchain viability.

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