On April 16, 2021, the Turkish Central Bank issued a statement relating to crypto assets.  It said that cryptoassets entail significant risks because: (i) they are neither subject to any regulation nor supervision mechanisms nor a central regulatory authority, (ii) their market values can be excessively volatile, (iii) they may be used in illegal actions due to their anonymous structures, (iv) wallets can be stolen or used unlawfully without the authorization of their holders, and (v) transactions are irrevocable.

Because of these risks, a Regulation was issued banning the use of cryptocurrency for payments.  As reported in the government’s official newspaper, the purpose of the regulation is so that cryptoassets will not be used for payments, directly or indirectly.  In addition, companies that handle payments and electronic fund transfers are prohibited from processing transactions involving cryptocurrency.  The Regulation goes into effect on April 30, 2021.

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David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.