The price of BTC fell after Turkey banned cryptocurrency payments
- The Central Bank of the Republic of Turkey has banned crypto payments.
- The CBRT cited the lack of a central authority and oversight mechanism.
- Bitcoin price fell shortly after the ban.
Last Friday, the Turkish central bank issued a ban on the use of cryptocurrencies as a payment method in Turkey. The decision to ban cryptocurrencies is due to the growing number of people using crypto assets in the country.
According to the central bank’s official announcement, the ban was due to a number of reasons including a lack of oversight mechanisms, central authority and stability.
Notice makes two very specific announcements. The first question is “do not use crypto assets in payment” and the second question is “do not use crypto assets in providing payment services and issuing electronic money”.
Analysts attributed the decline in BTC and ETH to the ban. Cryptocurrency websites such as Coinmarketcap and Coingecko show that both cryptocurrencies drop by a significant margin – 4% for BTC and 3.9% for ETH.
This ban will prevent the increasing use of cryptocurrencies in the country. This decision will seriously affect Turkey’s crypto market, which has gained traction as Turkish investors participate in the global crypto rally.
Outside of Turkey, there are other countries like India that have stricter plans when it comes to cryptocurrencies. A few weeks ago, India’s national government introduced their plan to propose a law banning cryptocurrencies in India. Owners and users of cryptocurrencies will face a hefty fine when the ban takes place.
This article was first published on coinquora.com
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