Turkey bans cryptocurrencies

crypto

Turkey’s central bank has banned the use of cryptocurrencies and crypto assets to purchase goods and services.

The ban comes a week after Turkish authorities demanded user information from trading platforms.

In a legislation published in the Official Gazette overnight, the Central Bank of Turkey (CBRT) said cryptocurrencies and other such digital assets based on distributed ledger technology could not be used, directly or indirectly, as an instrument of payment.

The growing boom in Turkey’s crypto market has further gained pace recently, with investors hoping to both gain from bitcoin’s rally and shelter against inflation.

Yet local investors said a weaker Turkish lira and inflation pressures, as well as hopes of quick gains, have driven up demand for the cryptocurrency.

Turkey’s annual inflation climbed above 16% in March.

The legislation goes into effect on April 30th.

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