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The central bank of Turkey has also prohibited payment providers from providing fiat-to-crypto onramps for cryptocurrency exchanges.
In Turkey, a recent ban would bar crypto investors from using their digital assets for payment, as well as payment services from transferring funds to their digital wallets at crypto exchanges.
According to a Friday statement by the Central Bank of the Republic of Turkey, the ban will take effect on April 30, making all crypto payment solutions and alliances unlawful.
According to the bank, “any direct or indirect use of crypto assets in payment services and electronic money issuance will be prohibited.”
Although banks are exempt from the law, users can still deposit Turkish lira on crypto exchanges through wire transfers from their bank accounts; however, payment providers would be unable to offer deposit or withdrawal facilities for crypto exchanges.
In Turkey, payment processors and digital wallets are commonly used to send fiat funds to cryptocurrency exchanges and vice versa. When Binance first entered the Turkish market, they collaborated with local payment provider Papara to provide a lira onramp for many different cryptocurrencies.
This latest rule gives consumers two weeks to clear their accounts if they only use payment services as fiat-to-crypto gateways.
Historically, the Turkish government has maintained close control over the payment ecosystem. PayPal, a big multinational payment provider, was outlawed in Turkey in 2016.
In recent months, cryptocurrency policy has become a hot topic in Turkey. The Turkish Ministry of Treasury and Finance stated last month that they are tracking the crypto environment and collaborating with the Central Bank, Banking Regulation and Supervision Agency, and Capital Markets Board to oversee cryptocurrency.