Turkey may establish central custodian bank following alleged fraud at two major exchanges

Turkey may establish central custodian bank following alleged fraud at two major exchanges


Following the arrests of several employees at Turkey-based crypto exchanges Thodex and Vebitcoin last week, government officials are reportedly planning to establish a central bank authority which could custody digital assets. 

According to a Bloomberg report, an unnamed senior official in the Turkish government said local authorities may be creating a central custodian bank aimed at eliminating counterparty risk for dealing in cryptocurrencies. The same source claimed that the government was also looking at instituting a capital threshold for exchanges and requiring executives at crypto firms to have a certain foundational knowledge of digital currencies.

The report comes as Thodex owner Faruk Fatih Özer is rumored to have fled to Albania following allegations of an exit scam which may have defrauded more than 390,000 users of the crypto exchange out of roughly $2 billion. Police detained 62 people connected to Thodex as the exchange said it would halt trading and withdrawals, while an international arrest order has been issued for

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