Turkey denies ban on cryptocurrency

Trade Moneta reports that Turkey’s central bank has ruled out a total ban of cryptocurrencies and said a wide range of crypto regulations is coming within two weeks.

Speaking on state-run channel TRT, Governor Şahap Kavacıoğlu said, “You cannot fix anything by banning crypto, and we do not intend to do this.”

Kavacıoğlu’s comments come less than a week before a planned ban on the use of cryptocurrencies for payments is due to go into effect.

The announcement of the ban, which came as the use of cryptocurrencies in the nation has soared due to the plunging lira, drew protests from the government’s political opponents.

The comments also came shortly after the detention of employees of two crypto exchanges that are being investigated by the government.

Without giving details about the coming regulations, Kavacıoğlu indicated the bank would clarify the legal definition of cryptocurrencies and regulate how they should be stored by institutions, Trade Moneta said.

The central bank chief said the regulations are needed to address the “alarming” number of funds leaving the country via cryptocurrency, according to the report.

News of the country’s coming ban on crypto use for payments sparked a sell-off in the price of bitcoin (BTC, +5.73%), partly on concerns that other countries could follow Turkey’s lead.