- Central Bank of the Republic of Turkey banned cryptocurrency payments.
- CBRT cited lack of supervision mechanism and central authority as reasons.
- Bitcoin’s price fell shortly after the ban.
Last Friday, the Turkish central bank issued a ban on the use of cryptocurrency as a payment method in Turkey. The decision to ban crypto was due to the rising number of crypto asset users within the country.
According to the central bank’s official announcement, the ban is due to several reasons including the lack of supervision mechanisms, central authority, and stability.
The announcement issued two very specific notices. The first one being “not using crypto assets in payments” and the second one being “not using crypto assets in the provision of payment services and electronic money issuance.”
Analysts attributed the fall of BTC and ETH to the ban. Coin information websites like Coinmarketcap and Coingecko show that both cryptocurrencies fell by a significant margin — 4% for BTC and 3.9% for ETH.
This ban will halt the increasing usage of crypto in the country. The decision will severely affect Turkey’s crypto market that gained traction as Turkish investors joined in the global crypto rally.
Aside from Turkey, there are other countries such as India that plans to be stricter when it comes to cryptocurrency. A few weeks ago, India’s national government showcased their plans to propose a law that will ban cryptocurrency in India. Cryptocurrency holders and users will face a heavy fine once the ban takes place.