The Government of Turkey has set a new law which made Crypto exchange a terror financing and money laundering business in the country.
The degree which is going to take effect right away means anyone who trade crypto in the country might face the penalty. The law will make it easier for the financial watchdog to investigate digital-currency holdings, according to a presidential decree published in the Official Gazette on Saturday.
The degree came immediately after the Government has put a ban on any form of carrying out transaction with crypto, which was introduced in response to claims that such transactions are too risky, took effect in Turkey on Friday.
The presidential decree makes “crypto asset service providers” responsible for seeing their assets are not used illegally.
Turkish authorities which in April made an investigation into fraudulent activities involving cryptocurrency exchanges, Thodex and Vebitcoin.
The 6 suspects involved in the Thodex probe were on Friday sent into jail pending trial.
The investigation into Thodex, which handled daily trades of hundreds of millions of dollars, initially led to the arrests of 83 people after customers complained of not being able to access their funds. Interpol issued a detention warrant for the firm’s CEO on Turkey’s behalf. Turks have seen crypto as a way out to the decline Lira and inflation in the country.
The government plans to establish a central custodian bank to eliminate counterparty risk due to the crisis of Thodex and Vebitcoin exchanges, as disclosed by a top Government official who has knowledge about the plan.
