Since cryptocurrency has gained mainstream attention, global regulation is becoming more stringent. One of the causes of the current crypto market crash is China’s strict regulations. Turkey has also published cryptocurrency regulation in recent developments, the country’s first of its kind.
The Central Bank of the Republic of Turkey did issue the decree (CBRT). The directive is designed to encourage the use of digital assets in payment transactions. And the law went into effect on April 30, 2021, as published in the Official Gazette under the number 314561.
The CBRT has issued Turkey’s first crypto regulation. The rules include four provisions, the first four of which are noteworthy. However, the recently released provisions will be detrimental to the Turkish crypto industry. Furthermore, the provisions of the crypto regulation are known to be carried out by the President of the Turkish Central Bank.
Restrictions on Turkish citizens
The first point of the provisions clearly states that Turkish citizens cannot directly exchange cryptocurrency for goods and services. Second, the central bank has stated that citizens will not use cryptocurrency for payment services. Furthermore, the residence is not permitted to issue e-money.
The central bank mentions cryptocurrency as a total intangible asset in the third provision. As a result, such assets cannot be used for payment by the citizen. Furthermore, no services involving the use of digital assets as a form of payment will be provided.
No crypto-related business models
The fourth provision takes the right away from local businesses that use cryptocurrency in their operations. The central bank has stated that the industry may include cryptocurrency as a payment method, either directly or indirectly. Furthermore, no organizations can provide services associated with such business models. On the other hand, part 2 of the fourth provision stated that payment institutions could not mediate on crypto-related platforms. Trading, custody, transfer, and other related services are all available on such platforms.
Hence after China, Turkey has cleared its stance over virtual assets. And now, there is yet another country with strict cryptocurrency regulations. As a result, Turkish citizens cannot use digital assets as a form of payment in the country.