Local media reported that a new institution has been set up in Turkey with the aim of monitoring the country’s crypto sector and helping to develop it. Its first task will be to address recent problems with some cryptocurrency exchanges and boost confidence in the industry as a whole.
A new entity to deal with problems in the crypto space in Turkey, hoping to increase transparency
The number of people trading cryptocurrencies in Turkey is estimated to be more than 8 million as of 2022, according to Emrah Inanc, president of the Digital Currency Industry Development, Monitoring and Reporting Association. He noted that the country ranks fifth in the world in terms of cryptocurrency investments.
Speaking to Anadolu Agency, the CEO of the newly established organization also emphasized that transparency is crucial to the development of the crypto sector. This is why efforts will first focus on solving issues related to cryptocurrency exchanges and improving trust in the industry.
Inanc noted that a number of exchanges from the Far East are trying to attract Turkish clients. Against this background, he noted that a lack of rules and regulatory authority had led to “inappropriate results,” and acknowledged some challenges in relations with the public sector:
We are facing allegations that some exchanges have illegally blocked customer accounts for financing terrorism and money laundering.
Imrah Inanak also indicated that the association is ready to exchange information periodically and transparently about the deficiencies it identifies with all relevant institutions. He also warned traders against dealing with foreign exchange platforms.
“In order to prevent these illegal practices and wrongdoings, we will take the necessary steps to block cryptocurrency exchanges… that cause illegal transactions, cause victimization, and threaten our citizens and the country’s economy,” Enanc explained. He also urged individuals and organizations to send requests, suggestions and complaints to the group by filling out a form posted on its website.
With the growing popularity of cryptocurrencies amid rising inflation rates, Turkey has become an attractive market for cryptocurrency exchanges in the past few years. Turkish traders have also been affected by some failures in the sector, including that of FTX which declared bankruptcy in mid-November. Turkey’s financial watchdog launched an investigation into the collapse of the main stock exchange because it owned a Turkish platform.
It also shut down several local exchanges, such as Thodex, whose founders and senior officials have been accused of fraud and money laundering as part of a suspected fraud. Vebitcoin was investigated when it ceased operations after the country’s central bank banned cryptocurrency payments, and Coinzo shut down as well.
Do you think the new crypto association will help develop the crypto industry in Turkey? Tell us in the comments section below.
Image credits: shutterstock, pixabay, wikicommons
Not giving an opinion: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.