Turkish authorities have obliged cryptocurrency exchanges to comply with anti-money laundering and countering the financing of terrorism (AML\/CFT) rules. The decree by President Recep Tayyip Erdo\u011fan was published in the Official Gazette, T.C. Resm\u00ee Gazete.<\/p>\n
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The document has already come into force. Under its scope fell fell under<\/a> 31 cryptocurrency exchanges.<\/p>\n Representatives of trading platforms are required to request documents from users verifying identity and residence, and to periodically check their validity.<\/p>\n Exchanges must block customer accounts on sanction lists, report any suspicious activity, and inform regulators about services offered to institutional clients.<\/p>\n On 20 April the local Bitcoin exchange Thodex unexpectedly ceased trading<\/a>, citing initially technical maintenance and then the transfer of the platform to a new partner. In the course of the investigation into the alleged exit scam detained 62 people<\/a>.<\/p>\n The CEO of the company, Faruk Fatih \u00d6zer, was declared wanted. Later a court arrested<\/a> six people connected with Thodex, including relatives of the platform’s head.<\/p>\n On 26 April the Turkish crypto exchange Vebitcoin ceased operations<\/a> due to financial difficulties. Authorities blocked the platform’s accounts and arrested four people connected to the company.<\/p>\n Against this backdrop, the central bank said the Ministry of Finance would soon present regulatory rules<\/a> for cryptocurrencies. Authorities also plan to establish a centralised custodian bank<\/a> to mitigate the risk of counterparty insolvency in the digital asset space.<\/p>\n In April 2021, the Central Bank of Turkey banned<\/a> the use of cryptocurrencies for payments for goods and services.<\/p>\n