Bitcoin Price Drops After Turkey Bans Cryptocurrency

Bitcoin Price Drops After Turkey Bans Cryptocurrency

Turkey's central bank banned the use of cryptocurrencies and crypto-assets to purchase goods and services, citing possible "irreparable" damage and significant transaction risks in a move that cooled global bitcoin prices.

The Central Bank of the Republic of Turkey (CBRT) said the use of cryptocurrencies and other crypto assets based on distributed ledger technology would be prohibited as payment, whether directly or indirectly. 

It said that, among other risks, cryptocurrencies "may cause non-recoverable losses for the parties to the transaction" due to the lack of regulation. 

A statement from the bank added that payments could "include elements that may undermine the confidence in methods and instruments used currently in payments."

Bitcoin Price Drops After Turkey Bans Cryptocurrency

Bitcoin was down 3% to $61,379 in the morning trade in London.

Demand for cryptocurrencies in Turkey has been driven up recently by inflation pressures and a weaker Turkish Lira. The country's annual inflation rose above 16% in March.

Before the announcement, Turkish authorities have last week demanded user information from trading platforms.

"Any authority which starts regulating with the ban will end up frustrated encourages fintech startups to move abroad," said economist Ugur Gurses on Twitter.

The legislation goes into effect on April 30.


Also Read: Bitcoin Hits New High of 62575


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