The cryptocurrency market took a hit on Friday after Turkey’s central bank announced a ban on cryptocurrency payments. The bank mentioned that crypto transactions come with significant risks.
According to the announcement by the Central Bank of the Republic of Turkey published in the Official Gazette, cryptocurrency balances cannot be used as a means of payment. The ban comes into effect on April 30th.
The central bank also pointed out that payment companies cannot provide deposit and withdrawal services for cryptocurrency exchanges. “Payment service providers are not allowed to develop business models or provide services in connection with such business models so that crypto assets are used directly or indirectly for the provision of payment services and the issuance of e-money. Payment and e-money institutions are not allowed to mediate the transfer of funds to or from platforms that offer trading, storage, transfer or issuing services in connection with cryptocurrency assets, ”said the official announcement.
Finance Magnates previously reported a crash in the Turkish lira and a surge in inquiries related to Bitcoin and other digital currencies. In March 2021, Bitcoin-related inquiries rose nearly 500% within hours of news of the crash in Turkish national currency.
The latest news surprised the cryptocurrency market as Turkey is one of the fastest growing crypto destinations. The country saw a massive surge in the adoption of digital currencies amid high inflation and a significant decline in the value of the Turkish national currency. The total market cap of cryptocurrency assets has declined nearly 3% in the past 24 hours. Bitcoin, the world’s most valuable digital currency, is currently trading near $ 61,000 with a market cap of more than $ 1.1 trillion. Ethereum is currently trading at around $ 2,400, down around 4% over the past 24 hours. Ethereum surpassed $ 2,500 yesterday after a massive surge in demand from retail and institutional investors.
The total market value of cryptocurrency assets is around $ 2.2 trillion.