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.
