A central bank for cryptocurrencies: the fight against the absurdity of anti-scam measures in the cryptosphere by governments, is about to begin. Turkey could toughen its tone against crypto players, after the suspicious behavior of 2 exchanges in the country.
Recentralize to secure
The Turkish government plans to create a central bank for the safekeeping of cryptocurrencies, after 2 major exchanges blocked their customers during the week of April 19, 2021.
The exchange Thodex suddenly went out of business and prevented its clients from making withdrawals. Faced with the many suspicions of fraud, the CEO of Thodex, Fatih Faruk Özer, indicated that this suspension of activities is due to cyber attacks.
The government did not hear it that way. The staff of Thodex was shut down, computers seized, exchange bank accounts frozen.
The Turkey started proceedings for the extradition ofOzer Albania, where he had visited when Thodex ceased its activities.
Shortly after shutdown of Thodex, the competitor exchange Vebitcoin has ceased its transactions and blocked its users.
He said “intense” transactions had put the company in “difficult financial shape”.
The government financial crime watchdog, MASAK, froze his bank accounts and opened an investigation.
Authorities could also require exchanges to keep a certain amount of liquidity. Crypto exchange leaders could be subject to accreditation requirements.
These provisions aim to limit the risks incurred by Turkish investors in the event of exchange failure.
Towards a hardening
The central bank of Turkey banned crypto payments in early April 2021. This measure hinders the proper functioning of foreign exchanges such as Binance, who can no longer use local payment services to deposit and withdraw Turkish liras.
Exchanges can nevertheless partner with Turkish banks, not subject to these restrictions. Local exchanges working with local banks have not suffered the effects of this ban.
According to a consumer survey carried out in 2020, 16% of Turks used or owned Bitcoin (BTC), a rate twice as high as the rate of adoption of Bitcoin by Americans. The cryptosphere is expected to launch bounty hunters after scammers. The latter are the main actors in the legitimization of the war waged by the government against cryptocurrencies, against the new finance.
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The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.