It has been a crazy week in the crypto market with the heavy price corrections, but the developments in Turkey are perhaps even more remarkable. Initially, the country had decided to ban the use of crypto as a means of payment.
It then came out that Thodex, a major Turkish cryptocurrency exchange, has suspended all trading. 391,000 customers suddenly no longer have access to their money and crypto. The owner of the company had fled the country, which suggests that it is an exit scam.
A criminal investigation has now been started into Thodex, all accounts of the stock exchange have been frozen and 62 people have already been arrested. Today it appears that another major Turkish crypto exchange is off the air: Vebitcoin. The accounts of this company have also been frozen and four people have already been arrested.
Yet there may also be good news for crypto fans from Turkey. The chairman of the central bank of Turkey (abbreviation: CBRT) recently said that new crypto regulations will be announced within two weeks.
The good news is that there is unlikely to be a blanket ban on crypto:
“You can’t solve anything by simply banning crypto, and we don’t intend to do it.”
Said the chairman Şahap Kavacıoğlu. However, he does not disclose any further details about what the new regulations actually entail. He just states that there will be more clarity and more guidelines for institutions on how to store their crypto.
One of the main reasons for these regulations is that, according to the chairman, huge amounts of money are leaving Turkey via crypto, although he admits that he has no reliable figures to substantiate this.
There is now a new message on the Thodex website. The CEO is now suddenly talking about suspicious activities as to why trading was suspended. We will probably see in a few days whether the stock exchange will open again or whether this is actually an exit scam.