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Crypto is facing new challenges in Turkey

Countries around the globe are approaching digital currencies in different ways. Some are banning them, while others are trying to regulate them.
turkey

Countries around the globe are approaching crypto in different ways. Some are banning them, while others are trying to regulate crypto.

Last week, Turkey’s Central Bank banned digital currency payments because of their anonymity and absence of regulations. This measure was taken because of crypto volatility and the felonious activity they are supposedly used for. Digital wallet theft and the impotence of the government to intervene were also mentioned in the press release.

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The ban, focused on payments used for goods and services, will be effective on April 30. People will still be able to own digital currencies and transfer fiat from bank accounts to crypto exchanges.

Just a few days later, Thodex, one of the largest crypto exchanges in the country went offline, and more than 300.000 users were left in confusion. Losses could reach $2 billion while Thodex Chief Executive Officer Faruk Fatih Ozer left the country.

The company’s accounts were blocked from the Turkish government, and its headquarters are under police custody. 62 people that were linked with criminal complaints got arrested by the police.

On Saturday, another Turkish exchange was shut down, and authorities blocked all of its overseas bank accounts. The Turkish Financial Crimes Investigation Board (MASAK) started an investigation on Vebitcoin one day after the platform announced it had ceased all operations due to financial issues.

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“Due to the recent developments in the crypto money industry, our transactions have become much more intense than expected. We would like to state with regret that this situation has led us to a very difficult process in the financial field. We have decided to cease our activities in order to fulfill all regulations and claims.”

Vebitcoin, on their website

Turkish police restrained Ilker Baş, Vebitcoin Chief Executive, along with three other employees during the weekend. They are now investigated for fraud. Şahap Kavacıoğlu, Governor of the central bank in Turkey, declared for the TRT channel that a total ban of cryptocurrencies is excluded.

“You cannot fix anything by banning crypto, and we do not intend to do this.”

Şahap Kavacıoğlu, Governor of the central bank in Turkey
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