Bitcoin price falls on Turkish government’s decision to ban crypto payments

Photo (c) Nipitpon Singad / EyeEm - Getty Images

Turkey’s central bank said its decision was partly based on the crypto market’s excessive volatility

The price of Bitcoin tumbled on Friday in response to Turkey’s ban on cryptocurrency payments. In a press release, the Central Bank of the Republic of Turkey announced that crypto assets won’t be able to be used directly or indirectly as a form of payment beginning April 30. 

The bank attributed its decision to several factors, including the market’s volatility and lack of regulation. It said crypto assets “entail significant risks to the relevant parties.” 

“It is considered that their use [crypto assets] in payments may cause non-recoverable losses for the parties to the transactions due to the above-listed factors, and they include elements that may undermine the confidence in methods and instruments used currently in payments,” the bank said in a statement published Friday in the official newspaper of the Turkish government.

Used for illegal actions

The bank also warned that cryptocurrencies could potentially be used in illegal actions “due to their anonymous structures” and that “wallets can be stolen or used unlawfully without the authorization of their holders.”

In response to the news, Bitcoin fell from $63,000 to $60,700 over a 24-hour period. Earlier in the week, Bitcoin had hit another record high of $64,717.01. 

There is some concern that other countries facing fiat currency crises could follow Turkey’s lead. Morocco has already banned crypto payments, and India is expected to propose a law banning cryptocurrencies that would make trading -- or even asset-holding -- punishable with a fine.

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