In our country, there is a great interest in crypto assets by people. Regarding crypto assets which has recently become very important among investment instruments, the “Regulation on the Non-Use of Crypto Assets in Payments” was published in the Official Gazette today. According to the provisions of this regulation, which will enter into force on April 30, 2021, crypto assets will not be used in payments, in the provision of payment services and in the issuance of electronic money; payment and electronic money institutions will not mediate on the platforms that offer trading, custody, transfer or issuance services regarding crypto assets or the fund transfers to be made from these platforms. However, it is important to determine the scope of the restriction introduced in the regulation.
What is a crypto asset?
With this regulation, a legal regulation was introduced for the first time regarding crypto assets and the definition of the crypto asset was made. summarize crypto assets by the Central Bank of the Republic of Turkey, created in a virtual environment, which is distributed through digital networks but fiduciary money, electronic money has been identified as an abstract entity that can not be regarded as a means of payment.
What restrictions are placed on crypto assets with the regulation?
Crypto assets under Regulation;
- Cannot be used directly or indirectly in payments,
- No service will be provided for direct or indirect use.
What is the limitation in the regulation regarding payment service providers, payment and electronic money institutions?
- Payment service providers will also not be able to develop business models in a way that direct or indirect use of crypto assets for the provision of payment services and electronic money issuance, and will not be able to provide services related to business models,
- Payment and electronic money institutions will not be able to intermediate the platforms that offer trading, custody, transfer or issuance services for crypto assets or the fund transfers to be made from these platforms.
Were crypto assets used as a means of payment until now?
Although it is not common, some statements have been made that crypto assets can be used instead of money in the accommodation, food and automotive industry. However, with the execution of this regulation on April 30, 2021, crypto assets will no longer be used as a means of payment in Turkey.
Berk Özşenoğulları, Attorney At Law