Bitcoin prices on Friday showed a lackluster performance after Turkey’s central bank decided to ban the use of cryptocurrencies for payment purposes starting later this month.
The Central Bank of the Republic of Turkey (CBRT) listed several reasons why the ban was imposed including weak regulatory mechanisms and lack of crypto regulation from the authorities.
In addition, the consideration is that the movement of the crypto market price is very volatile, wallet theft can lead to the loss of crypto assets and the use of crypto in illegal transactions.
The price of Bitcoin has declined by 4% to $ 60,902, having hit an all -time high above $ 64,000 earlier this week and Ehter is down nearly 5% to $ 2,401.
According to the Central Bank of the Republic of Turkey (CBRT), payment service providers do not have the opportunity to develop business models by means of crypto assets used directly or indirectly in the provision of payment services and electronic money issuance, and will not be able to provide services related to the business model. the.
Payment institutions and electronic money will not be able to mediate between platforms that offer trading, protection, transfer or withdrawal services for crypto assets or transfer of funds from these platforms.
Last month, Tesla CEO Elon Musk allowed Americans to buy Tesla using bitcoin. At the same time, the PayPal service has also allowed customers to buy goods with cryptocurrencies. However, CBRT believes that crypto assets carry "significant risks."
Turkey is not the only country that wants to take crackdown on digital assets. It was also reported that India would propose a law banning cryptocurrencies from trading or storing cryptocurrencies.
