According to reports, the Turkish government is setting up a regulatory framework for cryptocurrency after the country’s two cryptocurrency exchanges suddenly stopped trading and are under investigation for fraud. It is reported that the government is planning to set up a central custody bank, among other measures.

The Turkish government is committed to cryptocurrency regulation. “The government is planning to establish a central escrow bank to eliminate the risk of counterparties,” a senior official familiar with the plan was quoted as saying on Tuesday.

The publication reproduces that the Ministry of Finance and finance, the capital market Commission and the financial crime watchdog musk are involved in the establishment of the cryptographic framework, and preparations are expected to be completed within a few weeks.

In addition to setting up a central escrow bank, Turkish authorities are also considering imposing capital thresholds on crypto exchanges and making educational demands on the executives of these companies.

In addition, sahap kavcioglu, the governor of Turkey’s central bank, confirmed last week in an interview with kavcioglu, the local broadcaster, that the country’s finance ministry was working on broader cryptocurrency regulations. The governor added that the bank did not intend to ban cryptocurrency. However, the central bank recently banned the use of cryptocurrency as a means of payment.

Turkey’s two cryptocurrency exchanges suddenly stopped trading after the central bank banned cryptocurrency payments. Thodex and vebitcoin are currently under fraud investigation. Sixty two people were detained in connection with todex and four for viterbit.

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