Central Bank Governor Sahap Kavcioglu said on Friday that the Turkish Ministry of Finance is formulating broader regulations on cryptocurrencies, adding that the bank has no intention of banning cryptocurrencies. In an interview with Turkish Broadcasting Corporation, Kavcioglu said that some details will be ready within two weeks.

The central bank banned the use of encrypted assets for payments last week, citing major risks due to market value fluctuations. The Central Bank stated in the legislation published in the Official Gazette that encrypted currencies and other such digital assets based on distributed ledger technology cannot be used directly or indirectly as payment tools.

After being criticized by Turkey’s main opposition parties at 7:54 GMT (1:24 pm IST), Bitcoin fell nearly 3% against the U.S. dollar at 7:54 GMT (1:24 pm IST) to $61,490 (Approximately 4.6 million rupees).

The central bank said in a statement that, among other security risks, encrypted assets “are neither subject to any regulatory mechanism nor subject to central regulatory agencies.”

It said: “Payment service providers will not be able to develop business models by directly or indirectly using encrypted assets to provide payment services and electronic currency issuance,” and it will not provide any services.

Last week, Royal Motors, which distributes Rolls-Royce and Lotus cars in Turkey, became the first company in the country to accept cryptocurrency payments. Globally, giants such as Apple, Amazon and Expedia also accept such payments.


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