Turkish Government’s ban on crypto payments crashes Bitcoin price

*Turkey’s Central Bank explains its decision to ban cryptocurrencies was partly based on the crypto market’s excessive volatility and attendant huge risks to consumers

*Report says Bitcoin fell from $63,000 to $60,700 over a 24-hour period in response to the news  

Alexander Davis | ConsumerConnect

The price of Bitcoin has tumbled in response to the Turkish Government’s ban on cryptocurrency payments in the country.

The Central Bank of the Republic of Turkey in a statement Friday, April 16 published in the official newspaper of the Turkish Government, announced that crypto assets would not be used directly or indirectly as a form of payment with effect from April 30, 2021.

Cryptocurrencies

ConsumerConnect gathered the country’s Bankers’ Bank attributed its decision to several factors, including the market’s volatility and lack of regulation.

The Central Bank said crypto assets “entail significant risks to the relevant parties.”

The Turkish Central Bank noted that the level of anonymity behind the digital tokens brings the risk of “non-recoverable” losses.

The curbs also prohibit companies that handle payments and electronic fund transfers from processing transactions involving cryptocurrency platforms, according to the government.

The statement said: “It is considered that their use (crypto assets) 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.”

Claiming that cryptocurrencies are used for illegal actions, the Bank in the statement also warned consumers, that cryptocurrencies could potentially be used in illegal actions “due to their anonymous structures” and that “wallets can be stolen or used unlawfully without the authorisation of their holders.”

Meanwhile, in the response to the news, Bitcoin fell from $63,000 to $60,700 over a 24-hour period.

Hitherto in the week, Bitcoin had hit another record high of $64,717.01.

There is some concern that other countries facing fiat currency crises could follow Turkey’s lead soon.

Morocco has already banned crypto payments, and India is expected to propose a law banning cryptocurrencies that would make trading, or even asset-holding, punishable with a fine.

Kindly Share This Story