Turkey plans central custodian bank to manage crypto risks

Friday 30 April 2021 10:01 CET | News

The Turkish government plans on creating a central custodian bank to eliminate counterparty risk following the collapse of the two cryptocurrency exchanges in April 2021.

The country seeks to tighten its grip on the industry and authorities are also contemplating a capital threshold for crypto exchanges and education requirements for the executives at the firms, according to a report from CoinDesk citing Bloomberg.

The information comes days after Trade Moneta reported the head of Turkey’s central bank ruled out a total prohibition of cryptocurrencies and said a wide range of crypto regulations is around the corner.

Those comments came days before a ban on the use of cryptocurrencies for payments. The announcement of the ban, which came as the use of cryptocurrencies in the nation has soared due to the plunging lira, the local currency, drew protests from the government's political opponents.

Local media reported that in the beginning of 2021, moving in tandem with the Bitcoin price run, the country’s two largest crypto exchanges, Paribu and BtcTurk, were trading over USD 1 billion worth of crypto daily. According to local reports, the total volume of crypto traded in January 2021 accounted for around 25% of the traded volume on the country’s stock exchange BIST.

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Keywords: cryptocurrency, central bank, regulation
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: Turkey
This article is part of category

Blockchain & Cryptocurrencies