Turkey Is Likely To Introduce New Regulations For Crypto Exchanges

The government of Turkey is reportedly making plans to create a central agency for the operations and activities of crypto and Exchanges after the issues the two notable exchanges in the country have with customers.

Based on a report published on Bloomberg, there might be regulations that will require various exchanges to hold a specific amount of cash at hand and then introduce requirements for credentials for the executives of the exchanges. The move aims to limit the extent of risk an investor in Turkey would bear. Perhaps the exchanges fail in their obligations.

In the past week, Thodex, a BTC exchange in the country, stopped trading suddenly and also restricted its users from withdrawing their funds. Several people raise suspicion of fraud at the exchange but were denied by the CEO, Faruk Fatih, who claimed that it is due to cyber attacks.

There are uncertainties with the government, but had currently seized computers from the exchange, detained staff of the company, froze the company’s bank accounts, and had set plans for the extradition of the CEO from Albania where he hid during the dark hours of the exchange.

About that time, Thodex counterpart and rival, Vebitcoin, had a similar issue where users were stopped from trading and were locked out. The Turkish watchdog on financial crimes has also frozen the exchange bank accounts and had begun an investigation.

These issues all sprang up at a time of high volatility for crypto in Turkey, where trading BTC is popular. Previously this month, the Turkish government had banned the usage of crypto payment processors. This move had restricted the activities and operation of popular exchanges like Binance because there could not use the local payment processor to withdraw and deposit in the country currency.

The only exception is their partnership with local banks, which are exempted from the ban, which means that crypto exchanges locally with an existing collaboration with Turkish banks were not affected by the ban technically. Their customers can continue using local bank transfers instead of the third-party payment gateway.

These disappearing acts by Vebitcoin and Thodex may obviously bring more scrutiny to the crypto exchange in Turkey and make the government enact more regulations.

This perhaps would affect the general outlook of the crypto market as it was recorded that 16% of the global crypto users and owners are Turks which is two times the percentage from the US. Currently, the MASAK, ministry of finance, and the Market boards are deliberating on the details of the fresh regulations.