Earlier today, Friday 16th April, 2021, the Turkish Central bank published a new release that contained a set of regulations that placed a ban firms that facilitated the processing of cryptocurrency payments within the region.
Foreign Cryptocurrency Exchanges Are Affected
This decision might affect the businesses of foreign cryptocurrency exchanges in the region such as Huobi and Binance is designed to protect the country’s currency; Turkish Lira according to the Central bank. These exchanges will not be able to process Lira payments (deposits and withdrawals) via their former local payment firms with the new development within the region.
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For these exchanges to continue processing deposits and withdrawals, they have to partner with local banks to help facilitate payments processing as they are exempted from the ban that the government placed on local processing firms. But hopes of this is likely to be dashed as Banks are refusing to partner with exchanges because of “regulatory ambiguity” according to a lawyer; Mehmet Turkarslan as reported by media outlet Decrypt.
Businesses Are Affected
Binance’s partner in processing payments in Turkish Lira, Papara is affected by the ban. The CEO, Ahmed Karsli laments with the news of the ban as he claims about ten percent of his company’s revenue comes from crypto payments processing. Karsli also alleged that the government recently demonstrated its support for Fintech but this development seems to be far from anything looking like it.
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The Move Is to Protect the Turkish Lira
The Turkish Lawyer was impressed by the government’s acknowledgement of the existence of cryptocurrencies and trying to regulate them. He went on to state that he understands the standpoint of the government in trying to protect its currency from being extinct from daily use;
“I understand where the government’s coming from… The government does not want its fiat to become some sort of ghost money slowly disappearing from daily use”, he said in an interview with Decrypt.
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