Why was Papara's operating license revoked?

The End of Papara's Rise: Cancellation of Operating License

One of Turkey's popular digital finance companies, Papara Elektronik Para A.Ş., has announced the cancellation of its operating license by a communiqué published by the Central Bank. With this decision published in the Official Gazette, the company’s authorization to issue electronic money obtained under the Banking Regulation and Supervision Agency Decision No. 6862 dated 21.04.2016 has ended.

The Legal Framework Behind the Cancellation

The cancellation of Papara’s operating license was carried out in accordance with the Article 15 paragraph one, Article 18 paragraph two, and Article 19 of the Law No. 6493 on Payment and Security Settlement Systems, Payment Services and Electronic Money Institutions. This means that the legal basis for Papara's electronic money activities no longer exists.

Impacts on the Financial Ecosystem

The cancellation of Papara’s operating license may have serious repercussions in Turkey’s digital financial ecosystem. It is anticipated that uncertainties may arise regarding the digital wallet balances of users and transactions with businesses. Thus, not only Papara's credibility but also that of other companies offering similar services may come into question.

The Future of Papara and the Situation of Users

Following the cessation of the company’s operating license, uncertainty is expected regarding the receivables of its users and the balances in their accounts. This situation may necessitate further information and solution-seeking efforts for Papara users. Concerns may arise regarding the security of personal data and the protection of financial information.

In conclusion, Papara's operations can no longer be sustained within the current legal framework. How this situation will develop in the coming period and how the company's restructuring process will take place is keenly awaited in the financial world.