Bitcoin and other cryptocurrencies have been banned as a form of payment for goods and services in Turkey, according to a published early today by the country's central bank. Bitcoin fell 2% to approximately $61,600 shortly after the announcement, which cited "irreparable" possible damages and significant risks with transactions involving cryptocurrencies. The new legislation goes into effect on April 30. Cryptocurrencies had been in the midst of a boom in the country, which has seen inflation weaken the value of the Turkish Lira. The Turkish lira hit near historic lows last month, coinciding with a spike in Turkey's Google searches for Bitcoin. The Central Bank of Turkey (CBRT) said that the ban, on direct or indirect use of cryptocurrencies and other such digital assets, was necessary because these assets were "neither subject to any regulation and supervision mechanisms nor a central regulatory authority," among other security risks.

Turkey accounts for a large percentage of cryptocurrency use in the Middle East. The country ranks 29th out of the 154 countries on forensics firm Chainalysis' Global Crypto Adoption Index-and number one in the Middle East. On Turkey-based exchange BTCTurk, the most common trade is lira for Bitcoin.