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

Published 04/27/2021, 03:00 PM
Updated 04/27/2021, 04:40 PM
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.

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