Turkey-based Vebitcoin exchange has come under fire after it ceased its business operations amid a polarized crypto market terrain in the country. As reported by France 24, the Turkish authorities have arrested the Chief Executive Officer of the Vebitcoin trading platform, the second in a week after the Thodex exchange with a brawl with the authorities.
The harsh stance of the Turkish government to ban digital currency transactions in the country is coincidentally preceding an unprecedented strain on exchanges locking users’ funds per causes yet to be deciphered by the authorities. Thodex initially locked out about 400,000 customers, citing an ongoing sale transaction, with over $2 billion of investors’ money at stake. A manhunt is underway for Thodex CEO, Faruk Fatih Özer who has reportedly fled the country to Albania.
On the part of Vebitcoin, the exchange noted it had to halt its operations due to recent developments in the digital currency ecosystem. A move that signaled to authorities as an exit scam, fueling the ongoing investigation.
“Due to the recent developments in the crypto money industry, our transactions have become much more intense than expected,” the exchange said based on a translated version of an update on its website “We would like to state with regret that this situation has led us to a very difficult process in the financial field. We have decided to cease our activities in order to fulfill all regulations and claims.”
Trending Stories
Besides the Vebitcoin CEO detention, three others have been arrested in connection to the fraud probe. The officials per the report have also frozen the exchange’s account.
Turkey’s Tight Grip May Not be the Answer
Amid the tumbling value of the Turkish Lira, citizens have generally turned to crypto for solace, increasing the transaction volume from the country over 10 fold from November 2020 to March 2021 per France 24. In light of this reality, industry stakeholders have frowned at the tight grip stance the government wants to wield.
Stakeholders are advocating for a regulation system where crypto gains will be taxed as present in other nations, rather than an outright ban.
“Because cryptocurrency is currently unregulated (in Turkey), it could be more vulnerable to abuse and illicit activity,” Chainalysis’s government affairs chief Jesse Spiro told AFP “In general, regulations help build trust in this new asset class. On the other hand, the instability of the lira could make cryptocurrency more attractive.”
- Do Kwon Says Terra Collecting Snapshot Data For LUNA Airdrop
- Top ETH Whales Add These DeFi Tokens Amid Crypto Volatility
- Here’s Why Bitcoin (BTC) Could Be In for Another 50% Correction Under $15,000
- Another Top Exchange To Delist Terra UST Over Collapse
- Just-In: Vitalik Buterin No Longer A Billionaire As Ethereum Crashes
- Bitcoin Price: Key Metrics Show Surprising Insights
- After Terra Crash, Galaxy Digital CEO Warns Against Bottom Buying
- Shiba Inu (SHIB) Prices May Jump Next Week; Here’s Why
- Is Andre Cronje Back On Fantom? FTM Jumps 13%
- PlanB Says Bear Market Almost Over, Bitcoin (BTC) In Buying Range
- Bitcoin Price Analysis: Trapped Bullish Momentum Need Triangle Breakout
- FTM Price Analysis: Buyers Tease Breakout From Long-Coming Trendline
- GALA Price Analysis: High Momentum Fallout Warns $0.075 Fallout
- Solana Price Prediction 2022: Bulls to drive SOL Price to new Highs?
- Theta Price Prediction 2022 : Analysts Insights into the crucial Reversal levels
- Sandbox Price Prediction 2022 : Analysts Show Optimism Towards The Metaverse SAND Token
- Apecoin Price Prediction 2022 : The future of Web3 and NFTs ?
- Ethereum Classic Price Prediction 2022 : Here’s What to Expect from ETC Price ?
- SAND Price Analysis: SAND Buyers Await Trendline Breakout To Go Long
- Avalanche Price Analysis: AVAX Sellers Tease $30 Fallout; Sell or Hold?
