Turkish Central Bank to ban use of cryptos in payments

The Turkish Central Bank will ban the use of crypto assets in payments as they entail significant risks for the parties to the transactions.

Payment and electronic money institutions will not be able to mediate platforms that offer trading, custody, transfer, or issuance services for crypto assets besides mediating fund transfers from them, said the Official Gazette early Friday.

The regulation will come into force as of April 30, it said.

Separately, the bank warned of the risks of crypto assets such as not being subject to any regulation or supervision mechanisms or a central regulatory authority, excessively volatilely, and possibly being used in illegal actions due to their anonymous structures.

The bank added that wallets can be stolen or used unlawfully without the authorization of their holders, and transactions are irrevocable.

"Their use in payments may cause non-recoverable losses for the parties to the transactions due to the above-listed factors, and they include elements that may undermine the confidence in methods and instruments used currently in payments," the bank said in a statement.