Crypto payments banned in Turkey — Is this just the beginning?
April 20, 2021. Summarized by summa-bot.
Compression ratio: 26.3%. 2 min read.
Buying something with Bitcoin (BTC) in Turkey will soon be illegal, and the topic of crypto payments has become a political debate since the Central Bank of the Republic of Turkey’s April 16 announcement that it will forbid the use of cryptocurrency as a payment method. The regulation, which will go into effect on April 30, also bans the use of digital wallet providers as fiat on-ramps for crypto exchanges.
It prohibits providing crypto-asset trading, storage, transfer and export services and fund transfers made on these platforms. ” The negative tone of the announcement damages Turkey’s international reputation and reliability, Usta added, explaining: “The positive takeaway of the announcement is the definition of crypto assets within a legal framework for the first time. ” Crypto assets are now treated as “intangible assets that are virtually generated using a distributed ledger or a similar technology and distributed over digital networks,” not as money. Even the positive side of the regulation falls short, though according to him: “In the debate of using crypto assets in international trade, declaring that it’s not an instrument of payment may lead to problems later on. ”Comparing the decision of Turkey’s central bank to Russia’s crypto legislation, veteran finance journalist Erkan Öz clarified that cryptocurrencies are only banned as a form of payment and that it is still legal to trade them:“Ankara wants investors to send/receive local currency to/from crypto exchanges only through banks.
Semih Muşabak, CEO of central bank-licensed fintech firm Sipay, told Cointelegraph Turkey that “We need to update our planned progress accordingly. ” Following the legislation, however, he clarified that: “We don’t think the regulation will hinder the access to crypto-related services for the end-users.
“The regulation is more about payment providers and electronic money companies rather than crypto assets themselves. ” He further added that the legislation does not really change anything for crypto exchanges. The main reason that digital wallets were used as fiat on-ramps for crypto was the lack of partnerships between banks and crypto exchanges, Oral explained.
It is expected that the central bank will clarify implementation fundamentals. ”“Our business model is built on sellers and establishments instantly receiving the Turkish lira in their accounts while users make their payments via cryptocurrencies,” Tan explained, adding that: “We develop all our technologies in a way that supports the current system while not going out of the legislative regulations in matters like billing and taxation. ”Indeed, the central bank’s announcement was also made in preparation for a crypto tax law, according to Öz, as taxing investors would be much easier through banks.
This way, I am drawing the lines beforehand, to be updated as necessary in the future. ”Çağla Gül Şenkardeş, founding member of Istanbul Blockchain Women and founder of consulting firm Durugoru, also questioned the permanency of the regulation: “It may hinder the developer role of our country in distributed ledger technology. ”She further added to Cointelegraph Turkey that: “We had many international blockchain and crypto companies as clients that were planning to invest in Turkey, and they will surely reevaluate their plans after the central bank’s regulation. ”What would have been a “positive regulation”?For Usta, the answer is pretty simple: “We should pave the way for innovation.