Türkiye Bans Bitcoin Payments as Lira Collapses

Türkiye has banned all cryptocurrency payments as its own fiat currency, the Lira, collapses. The ban is said to begin at the end of April.
According to the new regulations from the Central Bank of the Republic of Turkey (CBRT), “payment service providers cannot develop business models in a way that directly or indirectly uses crypto assets to provide payment services and electronic money issuance, and cannot provide any services related to such business models.”
The CBRT cited several reasons for the ban, including a lack of “regulation” and “central authority supervision” mechanisms for cryptocurrencies. The CBRT also cited the volatility of the cryptocurrency market and the fact that many cryptocurrency transactions are irreversible.
“The payment uses may cause irreparable harm to both parties to the transaction as a result of the factors described above, including factors that could undermine confidence in current payment methods and instruments,” the CBRT regulation said, according to MarketWatch.
After months of economic recession, Turkish locals have begun exchanging lira for Bitcoin and other foreign currencies. According to LocalBitcoin’s peer-to-peer Bitcoin trading volume involving lira, BTC has been active in 2021.
Separately, in March this year, the Central Bank of Nigeria issued a reminder that cryptocurrency exchange operators in the country are prohibited from providing financial services. The reasons given are also similar to those given by the CBRT in this latest update.
Even though a ban like this would generate a lot of FUD, which can be reflected in the price of Bitcoin, Bitcoin is still traded peer-to-peer and under the radar like in its early days. Since Bitcoin has been surviving in situations like this, many Bitcoiners believe that Bitcoin cannot be banned outright.