What Does PayPal’s Shutdown in Turkey Mean for Bitcoin?

PayPal has been forced to cease operations in Turkey. The shutdown will go into effect on June 6. Turkey recently denied PayPal of a new license, which is required to operate within the country. According to TechCrunch, the reason for the denial was that PayPal does not localize all of their IT infrastructure inside of Turkey.

To get a clearer picture of what’s going on in Turkey, Bitcoin Magazine reached out to Emre Kenci, CTO and co-founder of BTCTrader, which owns and operates Turkish Bitcoin exchange BTCTurk.

Will Other Online Payment Providers Leave Turkey?

According to Kenci, PayPal’s reasons for leaving Turkey may also apply to other payment providers. Then again, others are able to earn exemptions. “Businesses like Western Union have been exempt from the law,” said Kenci.

“If the business is holding funds on behalf of the consumer, for the purpose of allowing the consumers to transfer money to other consumers or businesses, then the business needs an electronic money license,” explained Kenci. “If the business does not hold any consumer funds but allows businesses to accept payments, then they need a payment processor license. Electronic money license holders are allowed to operate as payment

Read more ... source: TheBitcoinNews

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