Turkish regulator warns banks about loans for cryptocurrency

Turkey’s Banking Regulation and Supervision Agency (BDDK) sent a circular to Turkish banks, advising vigilance against loans being diverted to cryptocurrency investments, Bloomberg HT reported on Tuesday.

All banks should have “maximum vigilance” against resources garnered via loans and credit accounts being removed from the registered banking and capital market systems, Bloomberg HT said.

The BDDK had previously warned against loans being used for short-term or current debt needs. The watchdog had said banks should be sensitive to investments focused on financial gain, such as foreign currency or gold purchases, as well as paying off other debts.

Banks should also be more careful regarding cash withdrawals “above a reasonable threshold”, and money transfers abroad except payments for regulated imports, BDDK had said in April last year.

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