Turkey Bans Cryptocurrency Payments, Saying Risks Are Too Great – BNN Bloomberg

(Bloomberg) — The Turkish central bank banned the use of cryptocurrencies as a form of payment, effective April 30, saying the level of anonymity behind the digital tokens brings the risk of “non-recoverable” losses.

The curbs also prohibit companies that handle payments and electronic fund transfers from processing transactions involving cryptocurrency platforms, according to a decree published in the official government gazette on Friday.

A lack of regulation, supervision mechanisms or central regulatory authority, combined with the potential for criminal activity and the high volatility of their market value mean digital tokens entail “significant risks,” the central bank said in a statement on its website.

In March, the Treasury and Finance Ministry said it shared the “global concern” about the development of cryptocurrencies. The ministry signaled it’s working on regulations in cooperation with the central bank, the banking regulator and Turkey’s capital markets board. Complaints from Turks mentioning cryptocurrencies soared by 8,616% in February from a year earlier, according to data from consumer forum Sikayetvar.

In January, European Central Bank President Christine Lagarde took aim at Bitcoin’s role in facilitating criminal activity, saying the cryptocurrency has been enabling “funny business.” India will propose a law that bans cryptocurrencies and fines anyone trading or holding such assets, Reuters reported in March, citing an unidentified senior government official with direct knowledge of the plan.

Bitcoin has surged 111% this year to trade above $60,000, while ethereum, the second-largest cryptocurrency, has jumped 225%.

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