“Payment service providers cannot develop business models in a way that crypto assets are used directly or indirectly in the provision of payment services and electronic money issuance, and cannot provide any services related to such business models,” according to the new regulation.
The CBRT said it had taken the decision amid a rise in the use of crypto assets to make payments.
But the CBRT said crypto asset payments came with “significant risks.”
“It is considered the use in payments may cause nonrecoverable 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,” it said.
Turkey isn’t the only country looking to take tough measures on digital assets. India is reportedly set to propose a law banning cryptocurrencies and making trading or even holding assets punishable with a fine. The bill was included in a government agenda in January, which also referenced plans to create an official digital currency issued by the Reserve Bank of India. “The bill also seeks to prohibit all private cryptocurrencies in India, however, it allows for certain exceptions to promote the underlying technology of cryptocurrency and its uses,” according to the agenda.