The new ban in Turkey will prohibit cryptocurrency holders from using their digital assets for payments, additionally preventing payment providers from adding funds to their digital wallets at cryptocurrency exchanges.
In line with an official announcement earlier on Friday by the central bank of the Republic of Turkey, the ban will inherit effect on 30th April, rendering any cryptocurrency payments solutions as well as partnerships illegal.
The bank added, “any direct or indirect usage of cryptocurrencies in payment services and electronic money issuance” is going to be forbidden.
While banks are excluded from the regulation, which suggests users can still deposit Turkish lira on cryptocurrency exchanges employing wire transfers from their bank accounts, payment providers are going to be unable to move forward with deposits or withdrawals services for crypto exchanges.
Payment providers and digital wallets are widely utilized in Turkey to transfer fiat funds to cryptocurrency exchanges and the other way around. Leading global exchange Binance partnered with the native payment provider Papara once they primary entered the Turkish market to offer a lira onramp for several different crypto assets.
This new regulation means users have 14 days left to clear their balances if they exclusively use payment providers as fiat-to-crypto currency gateways.
Earlier also, the Turkish government has always had a decent grip on the payment ecosystem. Also in 2016, Turkey banned several leading global payment providers PayPal within the country.
Cryptocurrency regulations are a hot topic for Turkey in recent months. Last month, the Turkish Ministry of Treasury and Finance revealed that they’re monitoring the crypto ecosystem and dealing with the central bank, Banking Regulation as well as Supervision Agency, along with Capital Markets Board to manage crypto assets.