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Central Bank cryptoassets decision: cannot be used directly or indirectly for payments

Crypto Assets published in the Official Gazette by the Central Bank of the Republic of Turkey in the morning and then not being used also discusses why the Regulation on regulations made another statement.

Crypto assets cannot be used directly or indirectly in payments, and no services will be provided for the direct or indirect use of these assets in payments.

The Central Bank of Turkey (CBT), the Regulation on Assets that will not be used in Crypto payment was published in the Official Gazette.

CRYPTO CANNOT BE USED AT PAYMENT

With the regulation, not to use crypto assets in payments, not to use crypto assets directly or indirectly in the provision of payment services and electronic money issuance, and that payment and electronic money institutions do not mediate negotiation, custody, transfer or issuance services. . of crypto assets or transfers of funds from these platforms, in order to determine the procedures and principles.

Cryptographic asset in the implementation of the regulation; Refers to intangible assets that are created virtually using distributed ledger technology or similar technology and are distributed through digital networks, but are not qualified as fiat money, cash, electronic money, payment instrument, securities or other market instrument of capitals.

IT WILL BE EFFECTIVE ON APRIL 30

According to regulation, crypto assets cannot be used directly or indirectly for payments. No service will be provided for the direct or indirect use of crypto assets in payments.

Payment service providers will not be able to develop business models in such a way that crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance, and they will not be able to provide any services related to such business models. Payment and electronic money institutions may not mediate platforms that offer trading, custody, transfer or issuance of crypto assets or fund transfers from these platforms.

The Regulation on the non-use of crypto assets in payments will come into force on April 30.

EXPLANATION OF THE CENTRAL BANK

Central Bank of the Republic of Turkey (CBRT), the use of the payment field of the existence of crypto, side of the process in terms of irreversible victimization creating the possibility that the method currently used in this area and reported that it contains elements They can be a confidence weakness against the vehicle.

In the press release made by the CBRT regarding the payments area, crypto assets are not subject to any regulation and supervision mechanism, there is no central recipient, market values ​​show excessive volatility, they can be used in illegal activities due to to its anonymous structure. , wallets can be stolen or used illegally without the knowledge of the owners, transactions can be reversed, it was emphasized that there are significant risks for related parties for reasons such as being irreversible.

“THERE IS THE POSSIBILITY OF CREATING VICTIMS”

In the announcement, it was noted that various initiatives regarding the use of such assets in the payments arena have recently begun to occur, saying: “The use of these assets in payments is likely to generate irrecoverable grievances for the parties to the transaction due to to the aforementioned reasons and may cause a weakness in confidence compared to the methods and tools currently used in this field, expressions were used.

In the announcement, which indicated that the regulatory work not to use crypto-assets in payments has been completed in this context, it was indicated that the Regulation on the non-use of crypto-assets in payments has been put into effect.

The announcement also reported that the aforementioned regulation was regulated within the framework of the powers indicated in Law No. 1211 of the CBRT and Law No. 6493 of Payment Systems and Securities Settlement, Payment Services and Electronic Money Institutions .

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