With digital assets catching the attention of the masses on a global scale, authorities and financial institutions are being forced to adapt to the times. While each country will have its own hurdles to clear, various events over the past week have highlighted issues arising in the Republic of Turkey.
CEO of Turkish Exchange Vanishes
A major catalyst to incoming regulations surrounding digital assets in the Republic of Turkey occurred days ago when Thodex CEO, Faruk Fatih Özer, disappeared. Coinciding with his disappearance, Thodex itself went ‘dark’, taking countless millions from its client-base with it.
While the size of this event it not yet clear, it is believed to be significant, with tens of thousands of investors caught in the middle.
Due to the events surrounding the aforementioned disappearance of the Thodex CEO, and its following shut-down, authorities sprang in to action immediately. It is believed that nearly 80 people are being sought, with warrants out for their arrest. To date, roughly 62 and counting of these individuals are believed to have been detained.
While the resources being deployed to handle the Thodex situation are extensive, this has not dissuaded Turkish authorities from seeking out individuals responsible for other events of similar nature. Vebitcoin, another Turkish digital asset exchange, also went dark days ago taking the funds of investors with it. In this instance, authorities have so far arrested 4 individuals.
Although those involved will surely beg to differ, it would appear as though the aforementioned exchanges attempted to pull an exit-scam due to increased scrutiny being placed on the industry by the Central Bank of the Republic of Turkey (CBRT).
We recently touched on what these restrictions involve, and the justification provided by the CBRT.
In addition to the previously announced restrictions, lead officials at the CBRT recently indicated that more comprehensive regulations would be announced in the coming weeks.
Interestingly, Head of the CBRT, Governor Şahap Kavacıoğlu, announced that while regulation were inbound, an outright ban will not occur. He stated, “You cannot fix anything by banning crypto and we do not intend to do this.”
All things considered, these are positive developments taking place in Turkey. Despite the actions of exchange like Thodex and Vebitcoin, authorities within the nation have decided to take an accommodating stance towards crypto itself.
Perhaps this decision was made on the realization that a ban on crypto would be a futile effort – regardless of the reasoning, regulation is a much-desired alternative to the ban expected by those watching the situation unfold.