The government of Turkey has joined the Indian government in placing a ban on the use and transaction of cryptocurrencies in the country. The news of the ban was published in Turkey’s official Gazette a few days ago.
The ban is to be effected on April 30th, 2021. From then onward, the use of crypto coins and fiat exchanges for crypto will be illegal, and those who indulge in crypto-related activities will be made to face proper sanctions. The Turkish government expects all investors and traders to withdraw their digital assets within the time left, and any form of access beyond the stipulated time will not be allowed.
Businesses will not be allowed to develop models that accept cryptocurrency as a payment channel or indulge in any crypto-related activities.
Are some Banks Excluded from the Ban?
While all businesses, including small and large, have been banned from using crypto as a medium of exchange for goods and services, some banks have been exempted.
Three foreign banks in Turkey, including BNP Paribas, Citi Bank, and UBS, have been excluded from the ban. The banking regulation and supervision agency granted the banks this right after they had fulfilled their Turkish Lira commitment.
Reasons Behind Crypto Ban
There are some reports that some foreign banks had bought a large number of crypto coins with Lira. It is believed that their action could devalue the Turkish Lira; hence the banks granted the right to perform crypto transactions.
The Turkish government has a stance on cryptocurrency similar to the Indian government. One of the reasons given for the ban was the fact that the crypto world was so unregulated, with no form of supervision or superior power to control the market.
The risk involved in transactions was another factor as the crypto world is so volatile, and many uncontrollable factors influence it.
Bitcoin had experienced a price drop following the announcement of the ban. Although the price has risen back, the ban did have a negative effect.
The government may have issues with the unregulated nature of cryptocurrencies, yet this remains the same factor that gives the market its peculiar feature.