Turkey has announced that it has banned the use of cryptocurrencies in the country. The country’s central bank has announced that going forward, no payment provider in the country can offer on-ramping of fiat to crypto.
On top of that, the government has announced that it was limiting service providers from sending funds to crypto exchanges. The new rules are expected to come into effect on April 30th.
However, the new rules do not affect banks. Anyone who wants to trade in crypto can still deposit the local currency to exchanges via wire transfers. The move is a big blow to payment providers, many of whom had partnered with top crypto exchanges like Binance.
Interestingly, this news has not affected the overall market in any way. That’s large because Turkey has been quite anti-crypto for a while now. It has also been quite hard on payment providers, including global ones.
Way back in 2016, the country banned Paypal from operating within its borders. The government could be taking measures to shore up demand for its currency, which has been tanking for several years now. Since President Trump started targeting the Turkish economy, its currency has lost a lot of value, and most locals have taken to crypto to hedge against inflation.
It will be interesting to see how the current move affects local trading activity. Globally, demand is still strong, with cryptos like Doge testing new all-time highs. It’s a sign of growing acceptance and overall market resilience.