Cryptocurrency turnover in Turkey is banned

Turkey has officially begun to suppress any attempts to turnover cryptocurrencies in the country. Representatives of the Central Bank of the state explained that such restrictions will be in effect until it becomes possible to control this industry, keep records of all funds.


This ban began to operate in Turkey in April, at the same time it became publicly available, and every resident could familiarize himself with the new rules. They primarily touched on the prohibition of cryptocurrency as a means of payment for goods or services. In connection with the innovations, many retail outlets had to stop exchanging the national currency - the lira - for digital money. As a result, the countrys authorities did not allow the circulation of digital currency on its territory to unfold with the help of counterparties or intermediaries.
One of the reasons for the ban, according to officials of the Central Bank, was the threat to the country in receiving losses. In addition, the governing authorities hypothesize that payments may undermine citizens confidence in the instruments for conducting monetary transactions.


Following the new rules, even registered companies and financial organizations that are licensed to operate are forced to abandon the following transactions:
    • from the provision of any services for the transfer of digital funds;
    • it is impossible to develop concepts of new business models that are aimed at carrying out transactions with cryptocurrency;
    • it is prohibited to store, buy or resell currency.


The representative of the Central Bank of Turkey nevertheless allayed some concerns regarding the cryptocurrency in the country and its turnover. He noted that the innovations are not aimed at banning the entire system. At the moment, a new, balanced system is being developed that will allow storing and keeping records of digital money. Until the advent and testing of this program, it is best to avoid transactions with coins, since the state cannot guarantee their safety.


Earlier, the news was published on the network that the Turkish government plans to create a special storage for the cryptocurrency. It will help reduce the risks that may be associated with investments by citizens of the country. Civil servants only want to establish certain requirements for exchanges and allow them to work only after passing the qualification selection.


In connection with this news, the Thodex and Vebitcoin exchanges abruptly ceased operations in April. The owner of the first one has already been put on the wanted list, he is being shown theft of more than two billion dollars. The second site was temporarily frozen while an investigation is underway on it.