CRYPTOCURRENCY REGULATIONS IN TURKEY
Cryptocurrencies, which its trading volume has been increasing day by day with the intense interest of both individual and institutional investors in the world, has turned into an investment tool that many investors in Turkey are in demand.
What are cryptocurrencies?
According to the regulation published in Turkey, cryptocurrencies are distributed and created virtually over digital networks using distributed ledger technology or similar technology, but they are intangible assets that are not considered as fiat money, electronic money, payment instruments or other capital market instruments.
What is the scope of cryptocurrency regulation in Turkey?
The Regulation on the Non-Use of Cryptocurrencies in Payments was prepared by the Central Bank of the Republic of Turkey (CBRT) and published in the Official Gazette on 16/04/2021 and entered into force as of 30/04/2021. This regulation is the first regulation in the field of cryptocurrencies in Turkey.
In accordance with the regulation:
· Cryptocurrencies cannot be used directly or indirectly for payments.
· No service will be provided for the direct or indirect use of cryptocurrencies in payments. Cryptocurrencies cannot be used in the provision of payment services and issuing electronic money.
· Payment and electronic money institutions will not be able to mediate platforms that offer trading, custody, transfer or issuance services for cryptocurrencies or fund transfers from these platforms.
Conclusion:
The CBRT has imposed an absolute ban, preventing the use of crypto assets as a means of payment. While the regulation does not prohibit the trading of cryptocurrencies, it eliminates the payment function completely.
Why did the CBRT ban payment methods with cryptocurrencies?
Explaining why such a regulation is needed, the CBRT drew attention to the irreparable grievances that may occur in the future. The following statements were used in the statement regarding the reasoning:
Recently, it has been observed that various initiatives for the use of these assets in the field of payments have begun to emerge. It is considered that the use of these assets in payments may cause irreparable grievances for the parties of the transaction and contain elements that may create a lack of confidence in the methods and tools currently used in this field.
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