The Turkish government is reportedly creating a regulatory framework for cryptocurrencies after two crypto exchanges in the country abruptly shut down trading and are now under investigation for fraud. The government is reportedly planning to establish a central custodian bank among other initiatives.
- The Turkish government is working on cryptocurrency regulation. Bloomberg reported on Tuesday that “the government plans to establish a central custodian bank to eliminate counterparty risk,” citing a senior official familiar with the plans.
- The Treasury and Treasury Department, the Capital Markets Board and financial crime watchdog Masak are involved in setting up the crypto framework, the publication said, adding that preparations are expected to be completed within weeks.
- In addition to creating a central custodian bank, the Turkish authorities are also considering imposing a capital threshold on crypto exchanges and training requirements for executives at those companies.
- In addition, Turkish central bank governor Sahap Kavcioglu confirmed last week in an interview with local broadcasters, Kavcioglu, that the country’s Ministry of Finance is working on broader regulation related to cryptocurrencies. The governor added that the bank has no plans to ban cryptocurrencies. However, the central bank has recently banned the use of cryptocurrencies as a means of payment.
- After the central bank banned cryptocurrencies for payments, two Turkish crypto exchanges abruptly stopped trading. Thodex and Vebitcoin are now under investigation for fraud. Sixty-two people have been detained in connection with Thodex and four people have been detained in connection with Vebitcoin.
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