Over the past few years, cryptocurrency has become one of the most discussed topics throughout the world. Buying and selling cryptocurrency is extremely popular nowadays, especially in the TRNC. There are dozens of cryptocurrency exchange points all over Northern Cyprus. Moreover, there are a growing number of TRNC companies that allow customers to use cryptocurrency as a method of payment for goods and services, and even to purchase a house in Northern Cyprus.
Despite the wide usage of cryptocurrency in Northern Cyprus, there are no laws or regulations that would regulate cryptocurrency turnover within the territory of TRNC. Laws of TRNC neither recognise crypto nor forbid it. Hence, all the withdrawals or payments made in cryptocurrency cannot be confirmed by receipt of payment, as such a document can only be issued for the traditional currency. Since the current legislation does not recognize and regulate cryptocurrency operations, the person who makes a payment in cryptocurrency is not protected by the law.
Recently, the newly established TRNC government announced its intention to prepare the legislation to regulate the use of cryptocurrencies. However, until the legislation comes into force, our advocates at Erginel Law do not recommend making the payment in cryptocurrency because it is not a legally applied method and brings many problems with it, especially when it comes to large transactions.
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