Turkey Follows Nigeria’s Step, Bans Bitcoin and Other Cryptocurrency

• The Central bank of the Republic of Turkey has issued a regulation on cryptocurrency

• The regulation prevents people from using Bitcoin and other cryptocurrencies directly and indirectly for payment

• The bank has listed the volatility and risk involved as a major factor for its ban

The Central bank of the Republic of Turkey has launched a regulation to cryptocurrency that stops people from using them as a means of payment.

According to the information passed on Friday, bitcoin and other cryptocurrencies cannot be used as a means of payment and no services can be provided for the assets.

The bank stated that the reason for the ban was because Crypto assets are high-risk to their users.

Factors such as volatility, absence of regulation, and fraud rates were also listed as reasons for the ban.

The central bank of Turkey also warned cities about the use of crypto assets in illegal actions, thanks to their anonymity.

The exact details of the notice can be seen below

Crypto assets cannot be used directly or indirectly for payments … No service can be provided for direct or indirect use of crypto assets in payments.

Read also: Nigeria’s CBN and SEC to Create Regulatory Guideline for Cryptocurrency Trading

The crypto regulation policy in Turkey will be enforced from April 30, 2021, based on orders from the governor of the central bank.

Turkey is not the first country to ban the use of Bitcoin and other cryptocurrencies in recent times. They follow the step of Nigeria who stopped financial institutions from processing crypto transactions earlier this year.