Government is trying to put a stop to the crypto chaos

According to an insider, the government in Turkey wants to set up a central crypto depository and capital threshold. The prosecution of the operators of the two blocked crypto exchanges is in full swing.

The past few weeks have been extremely turbulent in Turkey when it comes to the crypto market. Initially, the government caused a stir with a Bitcoin payment ban. In addition, the two large crypto exchanges Thodex and Vebitcoin were taken offline due to allegations of fraud. Given these events, the government’s need for action is immense. Now a senior government official has become the Bloomberg news agency disclosed. Accordingly, the government in Turkey is now planning to set up a central custodian bank.

As the insider further reports, the authorities are also considering a capital threshold for crypto exchanges as well as mandatory knowledge for executives in companies. Previously, the head of the Turkish central bank Şahap Kavcıoğlu had ruled out a total ban on cryptocurrencies. He added that a wide range of crypto regulations would come within two weeks.

Anyway, the government of Turkey is currently missing a clear line in terms of crypto regulation. The ban on the use of cryptocurrencies for payments is due to come into force this Friday. The announcement of this ban has caused turmoil. And not just because many investors feel they are being patronized, but especially because they urgently need an alternative to the Turkish lira, the rate of which is continuing to plummet. According to local reports, the total volume of cryptocurrencies traded in January accounted for around 25 percent of the volume traded on the country’s BIST exchange.

Turkey is looking for Thodex boss by international arrest warrant

This new announcement follows the collapse of the Thodex and Vebitcoin crypto exchanges. The latter even led to the imprisonment of four employees against whom the government is now investigating for fraud. Although Vebitcoin on his website writes that it would cease operations due to “intensive transactions” Turkey’s investigative authorities have reportedly already blocked Vebitcoin’s accounts. It is currently unclear exactly what sentence the suspect will face. In any case, Turkish prisons do not have a reputation for being particularly comfortable.

Rumor has it that Thodex’s operator, Faruk Fatih Özer, fled to Albania. The Turkish judiciary is now looking for him by international arrest warrant. The police have already arrested 62 people who they link to possible fraud at Thodex. The stock exchange shared, however via Twitter with that she would stop trading and withdrawing. According to Media reports The Albanian police broke into a house in Tirana and arrested two people who are said to have helped Özer escape.