The Turkish government plans to form a central depository bank to reduce counterparty peril in contracts with crypto assets and establish capital requirements for crypto exchanges.
Bloomberg reveals, citing a senior official acquainted with the ideas of the Turkish leadership, lawmakers plan to launch new procedures for partakers in the crypto industry. The source revealed the governments intends to establish a central custodian bank to eradicate counterparty risk after the collapse of two crypto exchanges in the past week.
Turkish agencies are also contemplating setting capital limitations for crypto exchanges and education conditions for their CEOs. Information about the upcoming regulation surfaced a few days after the chairman of the Central Bank of Turkey excluded the prospect of a full ban on cryptocurrencies in the country and declared that a wide range of new guidelines for the industry would be submitted within the next two weeks.
These comments are made just days before the ban on the use of cryptocurrencies for payments in Turkey is due to come into force. The prohibition, which was instituted as a response to a serious increase in the usage of cryptocurrencies in the country due to the collapse of the lira, has ignited protests from the government’s political rivals.
It is virtually impossible to totally ban cryptocurrency in the country. Turkish media revealed that in early 2021, corresponding with the rise in the rate of BTC, the trading volume of the two leading cryptocurrency exchanges in the country – Paribu and BtcTurk – surpassed $1 billion per day. According to community reports, the total crypto trading volume in January was about 25% of the volume being traded on the Istanbul Stock Exchange.
