Turkey could create a central bank after suspected fraud on two major stock exchanges

Following the arrest of several employees at Turkey-based crypto exchanges Thodex and Vebitcoin last week, government officials are reportedly planning to set up a central bank authority that could protect digital assets.

According to a Bloomberg report, an unidentified senior Turkish government official said local authorities may set up a central bank to eliminate counterparty risk for cryptocurrency trading. The same source claimed the government is also exploring the possibility of setting a capital threshold for exchanges and requiring executives of cryptocurrency companies to have a basic understanding of digital currencies.

The report comes after Thodex owner Faruk Fatihézer fled to Albania on allegations of exit fraud that could have defrauded more than 390,000 cryptocurrency exchange users for around $ 2 billion. Police arrested 62 people who had anything to do with Thodex and the exchange He said This would stop operations and withdrawals pending an international arrest warrant against à ?? zer was issued. Today the Albanian police searched a house in Tirana and arrested two people who allegedly had given assistance to Zer but could not find the owner of the cryptocurrency exchange.

Turkey could create a central bank after suspected fraud on two major stock exchanges
Turkey could create a central bank after suspected fraud on two major stock exchanges

The state news agency Anadolu also announced that employees of the crypto exchange Vebitcoin were being detained by authorities on similar fraud allegations, and later reported that CEO Ilker Bas was among the four detainees. Although Vebitcoin has announced on its website that it will cease operations, the Turkish Financial Crimes Investigation Board has already suspended Vebitcoin accounts and started an investigation into the alleged fraud.

The arrests and restrictions on exchanges come after the recently appointed Governor of Turkey’s Central Bank, Å ?? ahap Kavcà ± oà ?? lu, has effectively announced that it will ban cryptocurrencies in the country, a decree that will come into force on Friday. The order would prohibit holders from using their cryptocurrencies for payments and would also prevent payment providers from providing fiat entry ramps for exchanging cryptocurrencies.

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