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Turkey Bans Cryptocurrencies

Turkey Bans Cryptocurrencies for Payments

Turkey’s central bank (CBRT) in a surprising move, banned the use of all cryptocurrencies and digital assets to payments for services and goods, citing possible damage and significant transaction risks.

CBRT said that digital assets based on distributed ledger technology (DLT) could not be used, directly or indirectly, as an instrument of payment in any business in Turkey.

Turkey’s Central Bank said that the cryptocurrencies prohibition had been introduced because digital assets are not regulated or supervised, their prices are very volatile, electronic wallets can be stolen and might be used in illegal transactions. Turkish watchdog has long pointed to cryptocurrencies use in illegal activities as a reason to be cautious on any exposure in the crypto industry.

Bitcoin and cryptocurrencies penetration in Turkey is very high. Turkish investors turn to digital assets such as Bitcoin and Ethereum and run away from the troubled Turkish lira (TRY) as they are looking for a hedge against the rising inflation in the country.

Bitcoin is under heavy selling pressure after the news and as of writing, BTCUSD is 4.43% lower at $60490 while Ethereum (ETHUSD) is 5.31% lower at $2370.

Meanwhile the USDTRY is trading 0.53% higher at 8.062 close to monthly lows for the pair.

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