Home Stock Bitcoin fell as Turkey banned cryptocurrency payments

Bitcoin fell as Turkey banned cryptocurrency payments


Bitcoin fell early on Friday, after Turkey’s central bank decided to ban the use of cryptocurrencies for payments from the end of the month.

Central Bank of the Republic of Turkey (CBRT) cites one number of reasons for the banincluding the lack of “monitoring mechanism” and “central regulation” of crypto assets.

It says that the market value can “fluctuate”, adding that the digital wallet can be stolen or used illegally and transactions cannot be recovered.

Standard cryptocurrency
BTCUSD,
-4.10%

down 4% to $ 60,902, after reached an all-time high above $ 64,000 earlier this week in front of cryptocurrency exchange platform Coinbase’s
COIN,
-1.68%

public output. Ether
ETHUSD,
-4.14%
,
the second most prominent cryptocurrency in the world, also down 3.9%.

“Payment service providers cannot develop business models in such a way that crypto assets are used directly or indirectly in providing payment services and issuing cryptocurrencies. and unable to provide any services related to those business models ”, according new rules.

The CBRT said it has made the decision amid an increased use of crypto assets for payments.

Last month, Tesla CEO Elon Musk said Americans it is now possible to buy a Tesla with bitcoin and people outside of the US may do the same later this year. Electric car manufacturer Tesla
TSLA,
+ 0.90%

said it had acquired $ 1.5 billion worth of bitcoins in February, announcing plans to use it as a form of payment. PayPal online payment service
PYPL,
+ 2.54%

also began to US customers buy electronic money items at the end of March.

But the CBRT says the cryptocurrency asset payments come with “substantial risk”.

“The use of payment is considered to be able to cause irrevocable losses to the parties to the transaction due to the factors listed above and they include factors that can impair trust. into currently used billing methods and tools, ”it said.

Turkey is not the only country looking to take tough measures against digital assets. India is expected to propose laws to ban cryptocurrencies and make trading or even holding assets subject to fines. Invoice is included in one Government agenda in January, also mentions plans to create an official digital currency issued by the Reserve Bank of India. “The bill also seeks to ban all private cryptocurrencies in India, however, it does allow certain exceptions to promote the underlying technology of the cryptocurrency and its use,” according to the program.

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