The Turkish government is said to create a regulatory framework after the cryptocurrencies after two cryptocurrencies in the country abruptly closed trading and are now being investigated for fraud. The government is said to be planning to establish a central custodian bank, among other initiatives.
- The Turkish government is working to regulate the cryptocurrency. Bloomberg reported Tuesday that “the government plans to establish a central custodian bank to eliminate counterparty risk,” said a senior official familiar with the plans.
- Masak’s Finance Ministry, Capital Markets Council and Financial Crimes Supervision are involved in the development of the crypto framework, the publication said, adding that preparations are expected to be completed in a few weeks.
- In addition to establishing a central custodian bank, the Turkish authorities are considering introducing a capital threshold for replacement of crypto requirements and training for company executives.
- Furthermore, Turkish central bank governor Sahap Kavcioglu confirmed in an interview with local broadcaster Kavcioglu last week that the country’s Finance Ministry is working on broader regulation of cryptocurrencies. The governor added that the bank does not intend to ban cryptocurrencies. However, the central bank recently banned the use of cryptocurrencies as a means of payment.
- After the central bank banned the payment of cryptocurrencies, two Turkish cryptocurrencies abruptly stopped trading. Thodex and Vebitcoin they are now being investigated for fraud. Sixty-two people were arrested in connection with Thodex and four people in connection with Vebitcoin.
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