Turkey’s Finance Ministry is consulting on broader rules for cryptocurrencies, according to Central Bank Governor Sahap Kavcioglu. The bank has mentioned that it has no plans to outlaw them. Kavcioglu said in an interview with Turkish broadcasters that certain information will be ready in two weeks.
The central bank barred the use of crypto assets in payments last week, citing major risks associated with market volatility. The central bank stated in regulations published in the Official Gazette that cryptocurrencies and other digital assets built on distributed ledger technologies should not be used as a payment instrument, directly or indirectly.
After the Turkish ban on April 16, which was criticized by the major opposition group, Bitcoin was down nearly 3% to $61,490 (roughly Rs. 46 lakhs) against the dollar at 7:54 GMT (1:24 pm IST).
Crypto funds, according to the central bank, are “neither subject to any oversight and monitoring structures nor a central regulatory authority,” among other security concerns.
“Payment service providers will not be able to create business models in which crypto assets are used directly or indirectly in the distribution of payment services and electronic money issuance,” according to the statement, and will not be able to offer any services.
Royal Motor, which distributes Rolls-Royce and Lotus cars in Turkey, was the first in the world to announce that it would welcome cryptocurrency payments last week. Apple, Amazon, and Expedia are only a few of the global giants that support such fees.