The Turkish government plans to create a central custodian bank to eliminate counterparty risk following the collapse of two cryptocurrency exchanges last week, and as the country seeks to tighten its grip on the industry, Bloomberg reported, citing a senior official familiar with the plans.
- Authorities are also contemplating a capital threshold for crypto exchanges and education requirements for the executives at the firms, Bloomberg said, citing the unnamed official.
- The report 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 coming within two weeks.
- According to local reports, the total volume of crypto traded in January accounted for around 25% of the traded volume on the country’s stock exchange BIST.
- The comments came shortly after the collapse and detention of employees of two crypto exchanges that are being investigated by the government.