Chairman of the Central Bank of Turkey: crypto arrangement comes within two weeks

Turkey's central bank chief said on Friday, with a wide range of crypto currency arrangements he plans to announce within two weeks of the finance ministry. It ruled out any possibility of direct prohibition. Governor Şahap Kavacıoğlu said on the state channel TRT, "You cannot fix anything by banning crypto and we do not intend to do this." While Kavacıoğlu did not specify what future regulation would entail, he hinted that it would clarify the legal definition of "crypto" and determine how institutions should store crypto. Protecting the Economy Kavacıoğlu said that practices are needed to overcome the "alarming" amount of funds leaving the country with cryptocurrency. He said he did not have reliable numbers to back his claim, but "We don't even know if some of the crypto funds leaving the country will return." Mr. Naz Süllü, research director of the crypto exchange Icrypex, told Decrypt that the government wants to clarify in which jurisdictions virtual currencies are stored. Key question: "Is that remain will stay in Turkey?" Governments often block the departure of wealth from their countries in order to protect their economies. And Turkey's economy is struggling. Kavacıoğl, the institution of the last week of the payment processor (PayPal's counterpart in Turkey) of the crypto processing prohibition decision, said it was necessary to re-establish control of the government on the payment networks. Payment processors have "weak infrastructure", unlike banks that are not affected by the ban. Description Kavacıoğlu, came at a critical time for crypto in Turkey together with the end of the two stock exchanges. This week, two crypto exchanges, Thodex and Vebitcoin, suddenly stopped trading and prevented their customers from withdrawing funds. Attorney Oğuz Evren Kılıç, who represents some of Thodex's customers, said that digital asset regulation should have been a long time ago to protect investors. This type of regulation can also protect the crypto industry from the bad press barrier.

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